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TERMINATION FOR CONVENIENCE IN FEDERAL GOVERNMENT CONTRACTS

Posted on 13 May, 2014
Termination for convenience clauses are standard (and required) contractual clauses in federal government contracts and will be read into the contract even if not specifically incorporated. See G.L. Christian and Assocs. v. U.S., 160 Ct.Cl. 1 (Ct.Cl. 1963).  The clause allows the government...

SUPPLIER’S BURDEN OF PROOF IN A MILLER ACT PAYMENT BOND CLAIM

Posted on 10 May, 2014
What does a supplier need to do to prove a Miller Act payment bond claim?  A supplier must prove the following elements:   “(1) the plaintiff supplied materials in prosecution of the work provided for in the contract; (2) the...

GARDEN VARIETY PAYMENT DISPUTE BETWEEN OWNER AND CONTRACTOR

Posted on 8 May, 2014
Payment disputes between owners and contractors are common. The recent case of Hibachi Grill, Inc. v. Arki Construction, Inc., 39 Fla. L. Weekly D954a (Fla. 3d DCA 2014), illustrates two common scenarios that exist in the payment dispute: (1) the contractor claims it is owed...

CAN A JOINT VENTURER / PARTNER OF PRIME CONTRACTOR RECOVER UNDER THE MILLER ACT PAYMENT BOND

Posted on 4 May, 2014
Forming joint ventures / partnerships for a specific public construction project  is common.  Sometimes, a joint venture relationship arises between entities by virtue of agreements and the conduct of the parties demonstrating they are, in actuality, operating as a partnership for a specific project. 

RECOVERING SHARED SAVINGS (PROFIT) FROM A MILLER ACT SURETY

Posted on 30 April, 2014
Can a Miller Act payment bond claimant (e.g., subcontractor) recover shared savings from the payment bond surety?  The opinion in Fisk Electric Company v. Fidelity and Deposit Company of Maryland, 2013 WL 592907 (E.D.La. 2013), answered this question in the affirmative.