Imagine a severe thunderstorm damages a local public school such that classes cannot be held. Total repairs will cost almost $1.5 million and they must be completed soon so classes can resume.
What if you’re the contractor working diligently to repair the school building so students can resume classes? You promptly finish all the work, the school district pays for 2/3 of your work, but refuses to pay the balance, so you file a lawsuit against the school district.
But, the school district successfully argues your contract was void an unenforceable. Without a valid contract, the school district has no duty to pay for any of your work. Unfortunately, under the Virginia Public Procurement Act, the school district wins the lawsuit; so, it doesn’t have to pay you for the work that you timely and properly completed and it could sue you for return of the partial payments.
This recently happened to a public contractor in Virginia. Under the Virginia Public Procurement Act, there are provisions to expedite the creation of some contracts, but the public entity must properly justify and document the process.
Contractors, protect your rights by:
- Knowing the law governing your project and
- Verifying the public entity has complied with that law before it’s too late.
In this case, the Contractor performed its work well, but didn’t verify the public entity was properly performing its obligations until it was too late.
Government Must Review Claims in Good Faith, Not “Conjure Up” a “Baseless Retaliation”
A contracting officer’s review of certified claims submitted in good faith is not intended to be a negotiating game where the agency may deny meritorious claims to gain leverage over the contractor.
Termination for Convenience was OK to Get a Lower Price
When Massachusetts’ highest State court rejected Federal law on termination for convenience (T4C) a public entity’s “sole discretion . . . for […]
Pirates (Parties) Should Arbitrate Arbitrability
Yes, the word “pirates” is an anagram for “parties.” Participants in a lawsuit, arbitration, or mediation are collectively referred to as parties. Are they pirates too?
Very Bad Behavior Without Bad Faith is Not a Breach of Contract
Despite “abhorrent” behavior by the Army Corps of Engineers, a majority of the Armed Services Board of Contract Appeals held there was […]
Government Construction Contracts Require Bonds, Even When Contract Doesn’t Say So
Yesterday (Nov. 5, 2018), the Fed. Cir. Ct. of Appeals again endorsed the Christian doctrine, which can make unstated requirements part of a government contract.
Government’s Negligent Estimate a Trick?
The Government’s negligent estimate failed to provide the “most current information available.”
Prime Contractor Had No Duty to Help Surety Investigate Sub’s Default
We all know what happens when we “ASS-U-ME” something. So, we should all carefully avoid assuming things unnecessarily.
It’s Good to Be the King
Mel Brooks in the movie History of the World: Part I (1981) said it best – “It’s good to be the King.” It’s also true when asserting claims against the State or an arm or agent of the State.
Smoke Without Fire: Damage from Concrete Dust Covered by Insurance
You’ve heard, “where there’s smoke, there’s fire.” In this instance, the smoke was concrete dust that damaged a warehouse full of aircraft […]
