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Volume 3 - Number 17 | April 25, 2005
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EDITOR'S NOTES
The first case deals with a public owner who failed to require a contractor to furnish payment bonds. The owner, not the replacement contractor’s bonding company, was responsible for payments due to a subcontractor on the original contract in which the original, unbonded contractor defaulted. The second summary is an update on the Allglass appeal from September 2004.
In what has to be one of the more important articles we have run to date, U.C. Berkeley professor William Ibbs gives an update on the evolving art and science of false claims. Federal and state false claims acts are being applied to a wide range of contractor indiscretions, from alleged bid irregularities to prevailing wage rates. Professor Ibbs goes one step further than merely bringing it to our attention; he presents well-crafted steps for contractors and construction managers to follow, which will guard against situations that could result in unsuspecting false claims.
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DUTY TO FURNISH PAYMENT BOND ON PUBLIC WORK
By Michael J. Cerrato, Esq.
Pursuant to Little Miller Act statutes, public owners have a duty to require payment bonds from prime contractors. However, if the public owner fails to satisfy its statutory duty, unpaid subcontractors may instead pursue action against the owner.
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A CHECKLIST TO AVOID FALSE CLAIMS
By Dr. William Ibbs, Long D. Nguyen, Ron Shumway, and Roger M. Hughes
False claims liability has raised various questions for construction contractors involved in publicly funded projects. This article focuses on one of those questions; specifically, how can contractors ensure that any claims for extra money are properly prepared and submitted?
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