Contractor settles False Claims Act claim for $3 million
Houston based Williams Brothers Construction Company agreed to pay the federal government $3 million to settle False Claims Act and administrative claims for knowingly violating Disadvantaged Business Enterprise contracting requirements on federally funded highway projects.
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$24.75 million False Claims Act settlement
A joint venture of engineering and construction companies settled the claim brought by the federal government for allegedly submitting inflated claims on Amtrak's project to electrify the rails between New haven and Boston, reports the False Claims Act/Qui Tam Blog.
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Florida court holds contractor must prove work suspended to recover home office overhead damages for delay
Relying on federal precedent, a Florida appellate court held last month home office overhead calculated using the Eichleay formula cannot be recovered for a project delay when the contractor did not suspend all or most of its work.
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California strikes down pre dispute contract jury trial waivers
There's a good summary of the decision and you can download it over at the Construction Attorney Blog.
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More on Type II Contracts--the duty to negotiate in good faith
The federal Second Circuit Court of Appeals recognized preliminary agreements to enter into construction contracts create an enforceable duty to negotiate in good faith last month in Brown v. Cara.
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Judge John Roberts on Construction Law Issues
A Lexis search turned up three opinions directly related to construction law issues and claims authored by President Bush's nominee for the Supreme Court, Judge John Roberts of the D.C. Circuit.
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Are State Contracts Funded With Federal Funds Within the Scope of the False Claims Act?
A Utah federal district court decided two whistleblowers may proceed under the False Claims Act against a consortium of contractors involved in a $1.59 billion Utah Interstate Highway project even though the allegedly fraudulent claims were presented to a federal grantee--the Utah Department of Transportation--not a federal officer. The court declined to follow a 2004 D.C. Circuit opinion that presentment of a false claim to a federal grantee rather than the federal government falls outside of the False Claims Act.
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Damages Allowed for Sucessful Bid Protest
An Ohio appeals court recently ruled in Cementech v City of Flowood, Download file , that a disappointed bidder can recover lost profits as well as bid preparation costs in a lawsuit successfully challenging the wrongful award of a construction contract to another bidder.
Contrast this holding with our post on Hill Brothers Construction & Engineering Company, Inc. v. Mississippi Transportation Commission , a recent Mississippi Supreme Court decision, in which a majority declared damages were not recoverable.
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To Save $8 Million-- Rules Can Be Bent
In Hill Brothers Construction & Engineering Company, Inc. v. Mississippi Transportation Commission, Download file , the Mississippi Supreme Court held cost savings could be considered by a state board in deciding whether to accept a bid that did not strictly comply with the bid specifications.
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Actual Receipt of Notice Means Actual Receipt of Notice Under the Contracts Disputes Act
The difficulty of proving receipt by mail or facsimile is illustrated by last weeks decision of the Federal Circuit Court of Appeals in Riley and Ephrian Construction Company, Inc. v. United States, Download file reversing a summary judgment holding a contractor’s suit under the Contract Disputes Act was time barred because it was filed more than one year after the contracting officer mailed and faxed notice of his decision rejecting the claim.
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