This book examines what is often a "bet-the-company" area of construction law. In the last two decades, the federal government and whistleblowers have prosecuted billions of dollars in claims brought under the False Claims Act, with a substantial number arising from construction projects. There are many ways that construction projects can fall under the False Claims Act, including making one or more false payment applications or filing a false statement which is just part of a request for compensation. The civil penalties are severe: statutory penalties plus treble the amount of damages sustained by the government because of the fraud. False Claims in Construction Contracts, Second Edition is an essential desk book for civil and criminal litigators, as well as transactional counselors of contractors, subcontractors, suppliers, design professionals, project and construction managers, and even project owners. It provides a complete grounding in a complex and often intimidating area of federal and state law. It begins with a brief history and overview of the act, focusing on the sweeping changes made in the 1986 overhaul. A subsequent chapter details the steps and procedural issues involved in a private citizen bringing an action under the False Claims Act (FCA), also known as a qui tam action. The balance of False Claims in Construction Contracts focuses on all aspects of construction-related claims under the FCA, including discussion of the landmark Daewoo case. Topics covered:
• Bid rigging and collusive bids • FCA claims for false statements, from requests for information, through applications for progress and final payments, to certificates of completion • Claims against key participants in a construction project: design professionals and construction managers, and contractors and subcontractors • Damages and penalties in an FCA claim and how the severity and inflexibility of the statute's regime affects litigation and settlement • Retaliation claims • Corporate compliance programs viewed from the perspective of preventing often-devastating FCA claims -- and how to prepare when a claim is made • The corporation's perspective on practical considerations in defending a claim • Resolving FCA claims, most frequently through settlement • Criminal prosecution of FCA defendants, including the differences between inside and outside counsel
Description and analysis of the federal government's penalties guidelines The final chapter offers an especially valuable state-by-state summary of state false claims liability. Fourteen states have enacted statutes similar to the federal False Claims Act, and others are currently considering such legislation. Where states do not have a traditional false claims act, the summary explains alternate provisions addressing the submission of construction-related false claims.
