August, 2017 - Alter Surety Group

It Ain’t Over ‘til it’s Over

August 31, 2017 Leave a comment ASG Blog

What defines the completion of a contract for the purposes of legal action?

Effective July 1, contractors have a better idea of when a contract is finished due to a recent change to Florida law. In June of this year, Governor Scott signed House Bill 377, which amended the statute that deals with limits for filing lawsuits related to defects in design or construction on real estate improvements. For actual flaws in design or construction, the statute of limitations is four years. For latent defects — those that are not immediately discoverable — the statute of repose is 10 years.

Bonding Companies Can Be Held Liable Under Reverse False Claims Act

August 19, 2017 Leave a comment ASG Blog

If you’re involved with Federal construction projects and government set-aside programs like SDVOSB, know that your bonding company may ask a few more questions.

On July 31, 2017, the U.S. District Court for the District of Columbia issued a ruling in a reverse False Claims Act case that says bonding companies can be held liable for treble damages if they issue surety bonds to companies that try to defraud the government by falsely claiming to be a Service-Disabled Veteran-Owned Small Business (SDVOSB).

The Veterans Benefits Act of 2003 established a procurement program that allows federal contracts to restrict bid competition and award these set-aside contracts exclusively to small businesses that meet specific criteria, as in the case of SDVOSBs. Given that the government has exceeded its Federal contract goals for SDVOSBs four years in a row with $13.8 billion in small business contracts awarded, it’s easy to see why some contractors might be tempted to falsify their SDVOSB or other small business program status to get a piece of the action.

The benefits of having a Construction CPA and Construction Attorney

August 8, 2017 Leave a comment ASG Blog

Construction growth continues to be strong in 2017 in most sectors.

This growth is spurring the expansion of surety programs for healthy contractors who want to take on larger projects. One critical component in the surety – contractor relationship is the need for service specialists who know the construction industry. This includes CPAs and attorneys.