Real Estate & Construction

July 7, 2020

The COVID-19 pandemic has forced a technological revolution, with many companies switching their workforce to remote solutions for the first time and now recalling those same workers back to offices as cities move to reopen. While working remotely has had significant benefits, it has also presented new and different risks to company data security. Now as some employees are returning to the office (though others remain at home), this transition also presents challenges. Some of…

Construction Payment Blog

Virginia Sub-Tier Supplier Wins Unjust Enrichment Claim Against General Contractor

By Alex Benarroche

July 7, 2020

The Virginia Supreme Court recently upheld a decision allowing a material supplier to make an unjust enrichment claim against a general contractor with whom they did not have a contract. The supplier provided materials to a subcontractor on the project for which they were never paid. The court held that a sub-tier material supplier was allowed to recover directly from the general contractor. Unjust enrichment claims Generally speaking, in the construction industry, to file a…

Construction Payment Blog

Tennessee Enacts New Notice, Retainage, and Prompt Payment Rules

By Matt Viator

July 7, 2020

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Tennessee passed new legislation in June 2020 which made some pretty serious changes to the state’s construction payment laws, affecting rules for notices, retainage, and prompt payment. Perhaps most importantly, the state changed the Notice to Owner rules quite a bit. SB 2681 (and its counterpart HB 2706) moved through the Tennessee legislature in a hurry. After being deferred back in March, the bill was placed on the calendar on June 3, 2020 and was…

BuildSmart

Don’t Be Unreasonable: Equitable Adjustment Conditioned on Government Contractor’s Proof of Reasonable Interpretation of Contract

By Douglas L. Patin, Aron C. Beezley & Amandeep S. Kahlon

July 7, 2020

The U.S. Court of Appeals for the Federal Circuit, in U.S. Army Corps of Engineers v. John C. Grimberg Co., Inc., recently reversed an Armed Services Board of Contract Appeals (ASBCA) decision that a federal contractor was entitled to an equitable adjustment on a differing site conditions claim. The Federal Circuit held that the contractor, in developing its proposal, did not demonstrate that its interpretation of government subsurface data was reasonable — a condition…

Louisiana Law Blog

Is That a Real Covenant, or Just an Executory Contract? Midstream Agreements to be Tested in Coming Wave of E&P Bankruptcy Cases.

By J Eric Lockridge & Katilyn Hollowell

July 7, 2020

Every few weeks, another news outlet reports that a wave of energy-related bankruptcy cases is on the way. See links below if you need some examples.[1] A recent decision in the Alta Mesa bankruptcy case about pipeline contracts has some important lessons for producers and midstream companies evaluating how future bankruptcy cases may affect their costs and revenue. Alta Mesa Holdings, LP filed an adversary proceeding against one of its major midstream partners,…

California Land Use & Development Law Report

Agency Notice of Deadline for Filing Suit Was Defective

By Geoffrey Robinson

July 7, 2020

An administrative agency must provide the notice required under Code of Civil Procedure section 1094.6(f) specifying when its decision becomes final, and may not add potentially confusing information that undermines the statutory purpose of eliminating doubt as to when the statute of limitations to begins to run. Alford v. County of Los Angeles, No. B293393 (2nd Dist., July 1, 2020). Plaintiff filed a mandamus action challenging an administrative decision by the Los Angeles County…

Construction Payment Blog

South Texas Wind Farm Owes Subcontractor $4M According to Lien Claim

By Christopher Bokum

July 6, 2020

Following construction to complete the second phase of the Los Mirasoles Wind Farm, which spans two South Texas counties, project owner EDP Renewables is now linked to a $4M mechanics lien claim. The outstanding invoice has been lingering since the claim was affirmed on May 14, 2020, according to the lien affidavits. Subcontractor Bennett On-Site Services filed two identical liens pursuant to Texas’ mechanics lien laws in both Hidalgo and Starr Counties. EDP Renewables currently…

Real Estate & Construction Law

NYC DOB To Resume COVID Fines And Penalties

By Aaron S. Brotman

July 6, 2020

The New York City Department of Buildings announced that starting Wednesday, July 8, 2020, it would resume issuing violations and penalties of $5,000.00 per violation with the potential for a Stop Work Order for sites which do not comply with the New York State Phase One Reopening procedures. Continued non-compliance will result if penalties of up to $10,000 for each offense and are more likely to receive a Stop Work Order. This change was previously…

BuildSmart

Cybersecurity Health & Compliance: Best Practices in Commercial Business & Government Contracting Webinar

By J. David Pugh & David Vance Lucas

July 6, 2020

Learn how to protect critical data assets through basic cybersecurity hygiene, including email and password security and social media best practices. Other topics to be addressed include insider thread preparedness, cybersecurity and privacy issues in the remote work environment. In addition, government regulations and compliance topics, such as the coming Cybersecurity Maturity Model Certification and the current compliance and reporting requirements based on the Defense Federal Acquisition Regulation Supplement 252.204-7000 will be covered. When: Tuesday,…

Constructlaw®

CBCA Offers Potential Insight Into How Board Will Handle Claims Related to COVID-19

By Jamey Collidge

July 6, 2020

Panic of COVID-19 outbreak concept. Human hands holding various smart devices with coronavirus alerts on their screens. — COVID-19 2019-nCoV concept. Human hands holding various smart devices with coronavirus alerts on their screens. flat vector illustration

This article was originally published in Government Construction (Volume 5, Issue 2 – Summer 2020), an ABA Division 13 Quarterly Newsletter. It is republished here with permission. The United States Civilian Board of Contract Appeals (the “Board”) recently issued a decision that may be particularly pertinent in light of the COVID-19 pandemic. In Pernix Serka Joint Venture v. Department of State,1 the Board rejected a contractor’s claim for additional costs related to demobilization and…