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New Legislation Affecting Construction Companies in Maryland

With the close of the 2016 Maryland Legislative Session, several bills affecting construction companies were passed.  The following are summaries of each bill.  Governor Hogan must sign each bill into law, at which time each shall go into effect on July 2, 2016. Liquidated Damages for Failure to Pay Prevailing Wage – under this law,…

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Maryland’s “Economic Loss Doctrine” Limits Contractor’s Ability to Recover against Design Professionals

The Maryland Court of Special Appeals reaffirmed the application of the “economic loss doctrine” to a dispute between a construction contractor and a design professional, holding that the lack of a contractual relationship between the two parties precludes the contractor from recovering damages, arising out of a negligence claim, from the design professional.  In Balfour…

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Miss Utility’s Authority to Assess Violations and Impose Penalties Deemed Constitutional by Maryland’s Highest Court

The highest court in Maryland held that the Maryland Underground Facilities Damage Prevention Authority, also known as Miss Utility (“the Authority” or “Miss Utility”), is empowered to assess civil penalties against any contractor that damages underground pipes or cables.  In Reliable Constr. Co. v. Md. Underground Facilities Damage Prevention Auth., Reliable Contracting Company, Inc. challenged…

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Maryland State Board of Contract Appeals Dismisses Appeal Where Contractor Had No Reasonable Possibility of Being Awarded the Request for Proposal

In Appeal of Active Network, LLC, MSBCA 2920, the Maryland State Board of Contract Appeals considered whether the appellant had standing to bring forth a bid protest. Specifically, in response to a Request for Proposal, appellant ranked 7th out of 7th for both price and technical expertise, but claimed it would be entitled to the…

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Maryland State Board of Contract Appeals Rules Bids Cannot Be Modified After Submission If Extrinsic Documentation Is Required

In Appeal of Concrete General, MSBCA 2918, the Maryland State Board of Contract Appeals denied the appellant the opportunity to correct errors in its initially submitted bid because the requested corrections required reference to extrinsic information not included in the initial bid.  As such, the bid was deemed non-responsive and ineligible to be considered for…

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Maryland State Board of Contract Appeals Rules That Procurement Officers, Not Reviewing Agencies, Are Authorized to Issue Notices of Final Decision for Projects

In Appeal of KBE Building Corporation, MSBCA 2915, the Maryland State Board of Contract Appeals considered whether a procurement officer has the authority to issue a final determination or if the final determination must be issued by the “reviewing authority and the Office of the Attorney General”, pursuant to COMAR 21.10.04.04C. In this appeal, the…

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Maryland State Board of Contract Appeals Holds Agency May Reject All Bids And Re-Advertise The Solicitation If In The State’s Best Interest, But Requires Competitive Bidding For Extension to Existing Contract

In Appeal of Cigna Corporation, MSBCA 2910, the Maryland State Board of Contract Appeals considered two issues on appeal: 1) whether the State’s properly rejected all bids and re-issued solicitations because of deficiencies in the originally requested pricing information and 2) whether the State’s extension of the contract to the incumbent vendor, while the bid…

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Maryland State Board of Contract Appeals Rules That The Refusal To Grant An Extension of A Bid Due Date Is Not A Basis For A Valid Protest or Appeal

In Appeal of Intelect Corp., MSBCA 2905, the Maryland State Board of Contract Appeals found that the refusal to grant a prospective bidder’s request for an extension of a bid due date deadline is not a basis for a valid protest or appeal. In this appeal, the Maryland Transit Administration (“MTA”) issued an Invitation for…

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