News

Authorities are investigating the ride-hailing company's use of "greyballing" software
Law News May 05, 2017
The Justice Department has launched a criminal investigation into Uber's use of a secret software that was used to evade authorities in places where its ride-hailing service was banned or restricted, according to a person familiar with the government's probe, the Washington Post reported.   The...
It’s not often there’s a story where transportation infrastructure wins out in politics

Image: 123rf:kittiyaporn10

Funding News May 04, 2017
An Alabama State Senate committee this week approved a $1.8 billion 2018 General Fund budget—which for one northern Alabama lawmaker was an opportunity to a demand a change in favor of transportation infrastructure funding. The rub is that the change represents a cut of more than 3% to state...
Larry Caudle
Law Article May 02, 2017
It is universally accepted that a payment and performance bond surety’s liability is coextensive with that of its principal, the contractor.   A recent case in Georgia reinforces this view, but highlights how facts might nevertheless be construed more harshly against sureties than their principals...
Governor Scott Walker

Image source: Associated Press

DOT in Crisis News April 07, 2017
Trouble is brewing in Wisconsin, as GOP lawmakers removed a slew of provisions from the budget proposed by Governor Scott Walker—also a Republican—including the entire transportation planning portion.   The co-chairs of the Legislature's budget committee, Sen. Alberta Darling (R-River Hills) and...
Larry Caudle
Law Article April 03, 2017
Public entities require bid security to ensure bidders will honor their bids and enter into binding contracts. For the most part, a bidder will forfeit its bid security if it fails to honor the bid. However, a recent case in Michigan serves as a reminder to public entities that they must adhere...
Congressman DeFazio introduced legislation to raise the gas tax by 1 cent per year
Road Construction News March 23, 2017
Rep. Peter DeFazio (D-Ore.), the top Democrat on the House Transportation and Infrastructure Committee, unveiled new legislation Wednesday that would raise the gas tax by approximately 1 cent per year, to generate about $500 billion for revitalizing U.S. roads, bridges and transit systems over the...
Larry Caudle
Law Article March 02, 2017
A case decided by the U.S. Court of Federal Claims serves as a good reminder to contractors bidding public projects of the risks they assume concerning fortuitous losses to the work or stored materials prior to final acceptance by the government.   On Sept. 20, 2000, the Army Corps of Engineers...
Federal officials seized documents and electronic records from three Caterpillar Inc. facilities, including the company’s global headquarters in downtown Peoria, on Thursday morning as an apparent part of a criminal investigation into the company's tax strategy.
Law News March 02, 2017
Federal officials seized documents and electronic records from three Caterpillar Inc. facilities, including the company’s global headquarters in downtown Peoria, on Thursday morning as an apparent part of a criminal investigation into the company's tax strategy.   Agents from several federal...
Larry Caudle
Law Article February 08, 2017
Prime contractors typically use flow-down clauses to insure subcontractors are responsible to the prime contractor in all similar respects as the prime is to the owner.   Flow-down clauses are a more convenient approach than perusing the prime contract for every relevant requirement and physically...
United States of America Department of Transportation logo
Law News February 01, 2017
President Trump’s nominee for transportation secretary easily won confirmation yesterday, amid fallout from the administration’s temporary ban on travelers from seven majority-Muslim nations.   In a 93-6 vote, the U.S. Senate endorsed Elaine Chao to lead the transportation department, where she is...
Ca. governor looking to raise motorist cost to pay for infrastructure program

Photo courtesy: fotoluminate 123RF

Road Construction News January 18, 2017
It seems California is coming up short in its revenue projections to cover Gov. Jerry Brown’s proposed $179.5 billion budget for 2017. But according to sources, the governor is entertaining two means of raising funds to pay for a $4.3 billion dollar infrastructure plan,   “A $65 annual [vehicle]...
Larry Caudle
Law Article January 03, 2017
In previous issues, I have addressed the promissory estoppel doctrine and how it may be used by a prime contractor in some states to recover the cost of hiring a higher-priced subcontractor from the low-bid subcontractor who refuses to honor its quote. As a case in Pennsylvania illustrates, it is...
Larry Caudle
Law Article December 05, 2016
Most contractor claims never reach the formal claims process and are resolved on the project level after one or more negotiation sessions. These negotiations culminate in a change order, typically enforceable against both parties, which contains the specifics of the agreement. As a case decided in...
Colorado DOT

Photo source: Flickr/Phillip Capper

Asphalt Maintenance News December 02, 2016
The Colorado Department of Transportation (CDOT) has identified $9 billion worth of unfunded priority project, including the widening of I-25 between Monument and Castle Rock, but is faced with a $1.41 billion budget for 2017, a budget which is at present over-burdened with maintenance requests.  ...
Utah revised gas tax revenue formula to aid cities and counties
Road Construction News November 17, 2016
In effort to more evenly distribute revenue derived by the state’s gas tax, Utah lawmakers have changed a complicated tax distribution formula in hopes of making dissemination more fair across the state.   Gov. Gary Herbert called a special session of the legislature to address this issue after the...
Larry Caudle
Law Article November 04, 2016
Nearly all public construction contracts contain liquidated damages clauses.   These clauses are beneficial because they add certainty to the risk of late completion. Otherwise, the sky is the limit, and an owner could claim any damages the parties could have reasonably contemplated at time of...
Larry Caudle
Law Article October 06, 2016
Highway contracts typically contain several provisions that come into play in various scenarios which entitle the contractor to a change order.   Because the requirements and prerequisites for recovery sometimes vary from provision to provision, arguments occur over which provision applies to a...
road work sign
Road Construction News October 04, 2016
New Jersey Governor Chris Christie and state Democratic leaders announced late last week they have reached a deal for transportation funding that will raise the state gas tax by 23 cents per gallon, ending a summer-long standoff and statewide construction freeze.   For drivers, the higher gas taxes...
Larry Caudle
Law Article September 06, 2016
This month, I want to share with you a unique bid protest case involving an apparent attempt by an ineligible bidder to procure a project through a related company.   The case involves a project let by the Louisiana Department of Transportation and Development (DOTD) for bridge joint repairs and...
Overlay Init