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Miller Act and “Public Work of the Federal Government”

March 01, 2017 — David Adelstein – Florida Construction Legal Updates
The Miller Act applies to the “construction, alteration, or repair of any public building or public work of the Federal Government.” 40 U.S.C. s. 3131. A recent opinion out of the Northern District of Oklahoma sheds light on what the Miller Act means regarding its application to any public work of the Federal Government. See U.S. v. Bronze Oak, LLC, 2017 WL 190099 (N.D.Ok. 2017). If the project is not a public works project of the Federal Government, the Miller Act does not apply. In this case, the Department of Transportation entered into an agreement with the Cherokee Nation where the Department would provide lump sum funding and the Nation would use the money to fund transportation projects. Based on the federal funding, the Nation issued a bid for a transportation project in Mayes County, Oklahoma and the project was awarded to a prime contractor. The prime contractor provided a payment bond that identified the United States as the obligee (as a Miller Act payment is required to do) and stated that it was issued per the Miller Act. Thereafter, the Nation and Mayes County, Oklahoma entered into a Memorandum of Understanding where the County would assume responsibility for the construction and maintenance of the project and the Nation would pay the County an agreed amount upon the completion of the project. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Seeking Better Peer Reviews After the FIU Bridge Collapse

September 16, 2019 — Engineering News-Record
On the surface, it seemed like an outrageous defensive move following a painful tragedy. Louis Berger Group has refused requests from the Dept. of Labor to hand over emails with FIGG Bridge Engineers about its peer review of the ill-fated Florida International University pedestrian bridge. The structure collapsed on March 15, 2018, killing six people and injuring several others. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Philadelphia Voters to Consider Best Value Bid Procurment

May 10, 2017 — Wally Zimolong - Supplemental Conditions
My friend and colleague, Chris McCabe, recently published an opinion piece on Philly.com concerning the May 16 ballot question that asks Philadelphia voters to approve a change in the way Philadelphia awards public contracts. Currently, Philadelphia, like all municipalities in Pennsylvania, uses an objective lowest responsible bidder standard in the award of public contracts. Under this approach, public contracts must be awarded to a bidder that responds to all of the criteria of the request for bids and offers the lowest price. Under this traditional approach the award of public contracts is completely transparent. The May 16 ballot initiative seeks to change this. If approved, Philadelphia could award public contracts using a host of subjective factors. What those factors would be are unknown because the policies are not yet written. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Mortgagors Seek Coverage Under Mortgagee's Policy

July 19, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The mortgagor homeowners survived a motion to dismiss their claim for coverageunder the lender's property policy after their home suffered hurricane damage. Gary v. Am. Sec. Ins. Co., 2021 U.S. Dist. LEXIS 100010 (W.D. La. May 26, 2021). Plaintiffs' home was mortgaged by Pennymac Loan Services, LLC. Pennymac held a property policy with American Security to insure its interest in the home. Plaintiffs were not named as insureds or additional insureds under the policy. Plaintiffs were identified as the borrowers under the policy on the Declarations page. After hurricane damage to their home, plaintiffs sued American Security for coverage for the losses. American Security moved to dismiss, arguing plaintiffs were neither additional insureds nor third party beneficiaries. Lender-placed policies were designed to insure the lender's collateral whenever the borrower failed to maintain adequate insurance. The Loss Payment provisions in the policy stated that "Loss will be made payable to the named insured [Pennymac]. No coverage will be available to any mortgagee other than that shown as the named insured on the Declarations." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

More Regulations for Federal Contractors

October 08, 2014 — Craig Martin – Construction Contractor Advisor
The Office of Federal Contract Compliance Programs (OFCCP) has been busy. In the last several weeks, the OFCCP has proposed regulations that will require contractors and subcontractors to provide summary compensation data and another rule prohibiting federal contractors and subcontractors from discriminating against employees or applicants who inquire about, discuss, or disclose their own compensation or the compensation of another employee or applicant. Equal Pay Report The OFCCP has proposed Summary Compensation regulations which would require federal contractors and subcontractors with more than 100 employees to “provide summary data on the compensation paid to employees by sex, race, ethnicity, specified job categories, and other relevant data points.” Covered employers would have to submit three types of information: 1. the total number of workers within a specific EEO-1 job category by race, ethnicity and sex; Read the court decision
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Reprinted courtesy of Craig Martin, Lamson Dugan and Murray, LLP
Mr. Gopal may be contacted at pgopal2@bloomberg.net

As Florence Eyes East Coast, Are You Looking At Your Insurance?

October 02, 2018 — Michael S. Levine & Andrea DeField - Hunton Insurance Recovery Blog
Hurricane Florence will affect the U.S. east coast later this week with significant damage to property and resulting business disruption. Businesses far-removed from the impact zone also will be affected as manufacturing, retail, travel and supply chains, among other industries, are disrupted by the physical damage. For those in the impact zone, knowing the fundamentals about your property insurance is critical. For those in remote locations, now is a good time to refresh yourself as well, since post-storm disruptions and losses require prompt notice to insurers and fast action to help mitigate any resulting loss. A failure on either front could jeopardize coverage. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Andrea DeField, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. DeField may be contacted at adefield@HuntonAK.com Read the court decision
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Reprinted courtesy of

The Top 10 Changes to the AIA A201: What You Need to Know

May 24, 2018 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome back Melissa Dewey Brumback. Melissa is a construction law attorney with Ragsdale Liggett in Raleigh, North Carolina. Aside from the fact that she is a UNC grad and fan, she’s okay! In 2017, as it does every ten years, the American Institute of Architects (AIA) updated most of its standard form contract documents, including the A201 General Conditions. This cycle, the contract changes are evolutionary in nature, not revolutionary. Even so, it is crucial to know the changes to avoid making a fatal mistake that could cost you money on a construction project. In reverse order, the top 10 changes you need to know include: # 10: Differing Site Conditions Prior editions of the A201 provided that upon encountering differing site conditions, the Contractor was to promptly provide notice to the Owner and Architect, before the conditions are disturbed, and in no event later than 21 days after the conditions were first observed. A201–2017 shortens the time for notice from 21 to 14 days. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Mortgage Firms Face Foreclosure Ban Until 2022 Under CFPB Plan

April 05, 2021 — Alex Wittenberg - Bloomberg
Millions of homeowners who’ve fallen behind on mortgage payments due to the pandemic would have more time before facing foreclosure under rules proposed Monday by the Consumer Financial Protection Bureau. The revamp would generally prohibit mortgage servicers from starting foreclosures until after Dec. 31, the CFPB said in a statement. The goal is to give the nearly 3 million borrowers who’ve delayed or stopped making payments a chance to resume them before lenders initiate forced home sales. A key reason why the CFPB said the change is necessary is because an estimated 1.7 million consumers will exit U.S. forbearance relief programs in September and the ensuing months, meaning they will have to start making payments again. Read the court decision
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Reprinted courtesy of Alex Wittenberg, Bloomberg

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