| Federal Contractors Required to Use E-Verify to Confirm the Employment Eligibility of New Hires |
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June 24, 2008 Link
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On June 9, 2008, the Department of Homeland Security designated E-Verify, operated by U.S. Citizenship and Immigration Services in partnership with the Social Security Administration, as the electronic employment eligibility verification system that all federal contractors must use as required by Executive Order 12989, as amended. E-Verify is a free internet-based system that provides an automated link to federal databases to help employers determine employment eligibility of new hires and the validity of their Social Security numbers. Submitted by Barbara W. Menefee.
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| Florida Appellate Court Upholds Jury Findings That Surety Was Not Given Proper Notice to Trigger Bond Obligation |
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June 20, 2008 Link
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In Current Builders of Florida, Inc. v. First Sealord Surety, Inc., 2008 Fla. App. LEXIS 4698 (April 2, 2008), the Fourth District Court of Appeals in Florida reviewed a judgment rendered in favor of a contractor against its subcontractor for breach of contract. The jury had also found no liability on behalf of the subcontractor’s surety based upon a failure to give proper notice to the surety. The appellate court affirmed in part and reversed in part the ruling of the trial court. Submitted by Dave Olson.
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| Subcontractor Ordered to Arbitrate With Project Owner |
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June 18, 2008 Link
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While present in most subcontracts, many in the industry may not give careful consideration to “flow down” provisions and the extent of their potential impact. Such clauses are designed to make the terms of the owner-general contractor agreement a part of the subcontract. A subcontractor recently discovered such provisions can have a real effect on it. Submitted by Steve Withee.
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| Miami University Plans Extensive Capital Improvements |
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June 13, 2008 Link
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Miami University in Oxford, Ohio appears poised to start a large construction campaign. The school is ready to commence construction on a $80 million student center. Submitted by Erin Standen.
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| Delay in Notice by Obligee Prevents Claim Against Surety |
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June 11, 2008 Link
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In a case decided on April 8, 2008, a surety successfully argued that failure of an obligee to provide timely notice under the terms of a surety bond forfeited coverage under the bond. In Hunt Construction Group, Inc. v National Wrecking Corporation, 2008 U.S. Dist. LEXIS 27859 (D.D.C. April 8, 2008), Hunt Construction Group, Inc. engaged National Wrecking Corporation to provide excavation services for a project in the District of Columbia. The required surety bonds were issued with Hunt as obligee and National Wrecking as the principal. Submitted by Dave Olson.
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| Ohio Supreme Court Holds That Arbitration Provision in Construction Context Not Unconscionable |
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June 6, 2008 Link
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In a decision rendered on March 12, 2008, the Ohio Supreme Court in Taylor Building Corporation of America v. Benfield (2008) 117 Ohio St. 3d 352, 2008 – Ohio – 938 held that upon a review de novo the arbitration provision in a construction contract was not unconscionable under Ohio law. Submitted by Dave Olson.
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| Public Funds May Not Necessarily Mean Paying Prevailing Wages |
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June 2, 2008 Link
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It is not uncommon for private owners to utilize federal or state funds to partially finance the acquisition of property and subsequent construction projects. Many states have departments that assist in the management and disbursement of such grants, such as Ohio’s Department of Development. Participants in these projects often face the question of whether the use of public funds obligates them to pay prevailing wages. An Ohio appellate court recently ruled that the use of such funds does not necessarily mean that prevailing wages must be paid. Submitted by Steve Withee
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