Year: 2011

Misrepresentation or Good Negotiation: KBR Hit With Multi-Million Dollar Verdict

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12/07/2011Lowenstein, Neil S.

Prime contractors often negotiate claims, including subcontractor pass-through claims, with owners. This can put the prime contractor at odds with its subcontractors, depending upon what the owner is willing to negotiate, for how much, for what, etc. A recent Fourth Circuit decision involving the negotiation of Kellogg Brown & Root with one of its subcontractors… Read more »

Surveillance Can Be Dangerous – and Not Just to Your Claim

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11/22/2011Vandeventer Black

As I sat down to draft my blog this week, the most obvious thing that came to mind was a Thanksgiving/Workers’ Comp connection. I suspect there are some really interesting “Thanksgiving” cases out there. I can imagine an amusing story about a back strain from lifiting a turkey, or even a claim for psychological trauma as a result… Read more »

Contractor and Surety have to pay twice? Not so fast says Judge Hilton

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11/11/2011Lowenstein, Neil S.

One of the generally accepted differences between a payment bond claim and a mechanic’s lien claim is that lien claims can be extinguished by payment up the chain, whereas a payment bond principal (usually the prime contractor) or surety cannot rely upon payment as a defense and so can end up having to pay twice… Read more »

Fourth Circuit Confirms that Even ALJs are Bound by the U.S. Supreme Court

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11/09/2011Vandeventer Black

Workers’ compensation claims filed pursuant to the Longshore & Harbor Workers’ Compensation Act are formally adjudicated by the Office of Administrative Law Judges (ALJ) ALJs are not Article III judges under the judicial branch of the government; rather, they are considered to be part of the executive branch. While it is often true that many procedural rules and rules of evidence… Read more »

Virginia Little Miller Act Payment Bond Claim Notice Reduced to 90 days

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11/08/2011Lowenstein, Neil S.

Effective July 1, 2011, the time for a lower tier payment bond claimant to provide claim notice under Virginia’s Little Miller Act, Virginia Code Section 2.2-4341, was reduced from 180 days to 90 days. This clearly applies to bonds written after July 1, 2011, but leaves the question of application to bonds written prior to… Read more »

New Set Aside Rule for Multiple Award TO/DOs for Small Businesses

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11/03/2011Lowenstein, Neil S.

A new rule now authorized federal agencies to set aside task and delivery orders placed against multiple award contracts. The new rule also allows agencies to reserve for small businesses one or more multiple award contracts, as well as parts of those orders. The new rule further directs contracting officers to modify multiple award contracts… Read more »

Acquisitions Savings Reform Act: Coming down the pipe

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10/24/2011Lowenstein, Neil S.

Recent legislation was introduced by two republican (Brown and Collins) and one independent (Lieberman) to “reform” acquisitions to “save” time and money. Among other things, the proposed legislation forces contractors to submit for final payment within 60 days of completion for firm fixed priced contracts, and allows contracting officer to unilaterally closeout contracts without final… Read more »

Federal Prompt Payment Act Doesn’t Give Cause of Action to Subcontractors

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10/07/2011Lowenstein, Neil S.

In its recent decision in United States for the use and benefit of IES Commercial Inc. v. The Continental Insurance Co., D.D.C., No. 11-0985, 9/30/11, the U.S. District Court for the District of Columbia held that the Federal Prompt Payment Act (PPA) does not provide plaintiffs with a private right of action. It therefore dismissed… Read more »