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Privilege: No Blanket Rule and a Heavy Burden to Successfully Assert Privilege

TREETY By Cavan S. Boyle of Ernstrom & Dreste LLP Fundamental to all litigation is the disclosure of information through the discovery process. So, too, is the mastery of strategies for protection of privileged material from such disclosure. In the surety context, certain privilege claims are common. For example, where the surety and principal work together against an obligee to ...

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How a Tax Incentive Within the Inflation Reduction Act Could Reshape the Construction Industry

VENCAVOLRAB By Marty McCarthy of Marcum LLP According to the Department of Energy, the tax incentives within section 179D primarily benefit property owners and tenants that make construction expenditures. If you haven’t revisited them lately, it’s important to note that they were greatly enhanced by the Inflation Reduction Act. Let’s take a closer look at the details of the new legislation, and ...

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The Modified Total Cost Method to Calculating Construction Damages

NUTHAWUT SOMSUK By John Mark Goodman of Bradley Arant Boult Cummings LLP A Colorado federal court will allow a contractor to prove up more than $250 million in damages using the modified total cost method (see AECOM Technical Services v. Flatiron AECOM, LLC, Case No. 19-CV-2811, 2024 WL 22640 (D. Co. Jan. 2, 2024)). The AECOM v. Flatiron case involves a Colorado DOT project to add ...

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Good News for Pandemic-Related Government Contract Claims: McCarthy HITT – Next NGA West JV

ILKERCELIK By Lauren Brier and Annie B. Hudgins of PilieroMazza On December 20, 2023, the Armed Services Board of Contract Appeals (the Board) denied the government’s motion to dismiss pandemic-related claims. In doing so, the Board rejected the government’s arguments, alleging that the claims (1) failed to state a claim upon which relief can be granted; (2) were barred by ...

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Clean Vehicle Credit Drives New Tax Savings for Contractors

ISTOCK.COM/Владимир Мелентьев By Ronald J. Eagar of Grassi As our world becomes increasingly focused on environmental, social, and governance (ESG) issues, many businesses are turning to electric vehicles (EVs) to help reduce their carbon footprint and take a step forward into the more electrified world of tomorrow. In turn, the benefits they receive range from lower operational costs to higher ...

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Contractor Recovers COVID-19-Related Additional Costs

ISTOCK.COM/RICHARD JOHNSON By Aron C. Beezley and Lisa Markman of Bradley Arant Boult Cummings LLP The Armed Services Board of Contract Appeals (ASBCA), in the case of StructSure Projects, Inc., recently granted COVID-19-related costs to a contractor under a fixed-price contract. The key facts, holdings, and takeaways from this noteworthy case are discussed below.    The Facts The government awarded the ...

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SBA Tightens Enforcement of HUBZone Regulations

ISTOCK.COM/RELIF By Antonio R. Franco, Jon Williams, Isaias “Cy” Alba, IV, and Matthew E. Feinberg of PilieroMazza Government contractors maintaining or seeking HUBZone certification should make themselves aware of the Small Business Administration’s (SBA) recent efforts to tighten and enforce new and existing rules surrounding the HUBZone program. In this article, PilieroMazza details the SBA’s enforcement efforts and the major implications for HUBZone ...

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Evaluating Resilience: How Construction Firms are Responding to Economic Shifts

ANDRII YALANSKYI By Joseph Natarelli of Marcum LLP Macroeconomic factors continue to drive change within the construction industry. In an economic environment defined by unpredictable movement and high volatility, surety professionals and their construction clients must recognize the warning signs. This article will examine the financial issues contractors are confronting, the means they are employing to navigate those changes, and the ...

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No Obligee Bad Faith Claim: Surety’s Duty Differs From Insurer’s

MOUSSA81 By Cavan S. Boyle of Ernstrom & Dreste LLP In a case of first impression for Indiana, the state’s intermediate appellate court recently held that the common law duty of good faith recognized between insurers and insureds does not extend to a surety-obligee relationship under performance and payment bonds on construction projects.[1] The ruling resulted in the dismissal of ...

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New DOL Final Rule Regarding the Davis-Bacon and Related Acts Will Have Significant Impacts on Contractors

POKPAK05 By Sarah K. Carpenter of Smith, Currie & Hancock LLP Key Takeaways The Department of Labor (“DOL”) announced its long-awaited final rule updating the Davis-Bacon and Related Acts. The new rule will have significant impacts on many industries and businesses, particularly federal construction contractors and subcontractors. Regulated parties have 60 days from publication of the final rule in the Federal Register ...

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