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Bid Bonds on Federal Contracts – Just the Fax

by Kent Holland | Feb 8, 2011 | Newsletter Article

Bidders on most sealed-bid federal contracts are required to furnish a bid guarantee along with their bids. The bid guarantee is usually provided in the form of a bid bond issued by a Treasury-listed surety company. The purpose of the bid bond is to guarantee the...

Government Warranty of Performance-Type Specifications

by Kent Holland | Feb 8, 2011 | Newsletter Article

Two recent Board of Contract Appeals decisions addressed the conflict between the Government’s implied warranty of its design and its attempt to disclaim that warranty through the use of performance specifications.  In both cases, the Boards allowed the...

Surety Fails to Pay on Bond for Default Termination

by Kent Holland | Feb 8, 2011 | Newsletter Article

When the U.S. Government terminated a contractor for failure to perform in accordance with the contract provisions, the contractor’s surety asserted that the termination was wrongful and refused to pay on the performance bond.  After much litigation it was held...

Architect Cannot Sue Construction Manager for Negligence

by Kent Holland | Feb 8, 2011 | Newsletter Article

Where the project architect sued the construction manager (CM), asserting that that the CM  negligently performance its services and thereby impacted the architect’s services, costs, fees, and profits, the court held that the contract between the CM and owner did not...

Violation of New York City Ordinance Does Not Constitute Negligence Per Se

by Kent Holland | Feb 8, 2011 | Newsletter Article

An individual who was injured when he fell from bleachers that were not protected by handrails sued the City of New York and others for negligence based on an alleged violation of a city building code.  A trial court found that the violation constituted negligence per...

Surety Hit with Substantial Punitive Judgment

by Kent Holland | Feb 8, 2011 | Newsletter Article

Sureties play a vital role in public construction projects.  As a result, many states have enacted statutory guidelines regulating how insurance companies and sureties administer claims made on their policies or bonds.  Massachusetts is one such state that has enacted...
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