Connecticut’s New False Claims Act Increases Risk to Public Construction Participants

Below is an excerpt of an article published in the Winter 2023 issue of CONNstruction magazine, the quarterly publication of the Connecticut Construction Industries Association.

After several decades, Governor Ned Lamont signed a bill into law, effective July 1, 2023, An Act Concerning Liability for False and Fraudulent Claims, Public Act No. 23-129, eliminating language that previously limited enforcement of Connecticut’s False Claims Act to claims relating to a state-administered health or human services program. The revisions dramatically expanded potential liability under the False Claims Act, allowing both private citizens and the Attorney General to bring actions under the Act in any context, including the construction industry. Consequently, contractors, subcontractors, suppliers and design professionals on public construction projects in Connecticut must be familiar with this newly enacted law and take steps to reduce the risks of doing business on such projects.

Construction and construction-related entities now need to make additional efforts to ensure any submissions to state or local governmental entities are accurate. In general, the Act broadly prohibits individuals and entities from knowingly presenting or utilizing false information to make a claim for payment or receive funds from the State of Connecticut, except for any claim, record, or statement made or presented relative to the payment of any tax to the state. The statute does not limit enforcement of the Act to any particular part of a project, nor does it limit its application to specific parties. Rather, the Act applies to any application for or receipt of state funds, meaning that the Act’s enforcement on public construction projects applies equally to contractors, subcontractors, suppliers and design professionals; it may even apply to claims consultants and others submitting claims to the state on behalf of a contractor. Read the full article.