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Matthew Hjortsberg Named Fellow of the Construction Law Society in America (“CLSA”)

The Construction Law Society of America (“CLSA”), an international association of the world’s best construction lawyers, has named Matt Hjortsberg a fellow of the Society.  Evaluated for effectiveness, accomplishment in construction law, and ethical reputation, Matt will join one of the honorary trial orders that recognizes fellows who have tried and arbitrated cases at accomplished…

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Major Supreme Court Decision on Sales Tax and Internet Sales

On Thursday, June 21, 2018, the Supreme Court decided that an out-of-state seller can be required to collect sales tax in a state even if the seller doesn’t have a physical presence there. In doing so, the Court expressly overruled its own longstanding precedent. The primary practical impact of the decision is that internet sellers…

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“Paid-if-Paid” v. “Paid-When-Paid” Clauses

On May 24, 2018, the Court of Appeals of Maryland filed its decision in Young Electrical Contractors, Inc. v. Dustin Construction, Inc. In its decision, the Court of Appeals analyzed a Subcontract under Virginia law to determine whether the payment provisions in the Subcontract were “paid-if-paid” or “paidwhen-paid” provisions. The Circuit Court held that a…

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Subtle but Substantive Differences: Mechanics’ Liens in Maryland, Virginia, and the District of Columbia – Pre-Lien Requirements

Mechanics’ lien are an important tool to unsure payment for general contractors and subcontractors for construction projects; however, because mechanics’ liens are a statutory creation, the requirements to obtain a mechanics’ lien vary by jurisdiction.  In Maryland, Virginia, or Washington D.C., general contractors and subcontractors must understand the different requirements, which include different pre-lien requirements,…

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Maryland’s Non-Licensed Residential Subcontractor Loophole

Maryland subcontractors need to ensure they are in compliance with all regulatory and licensing requirements before performing work on residential buildings or they may be left with nothing to show for it.  Maryland law clearly prohibits a subcontractor from performing work on a residence without a home improvement license and the failure to have a…

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Using the Maryland Construction Trust Statute as a Tool for Payment by Subcontractors

The Maryland Construction Trust statute protects subcontractors from dishonest practices by general and higher tiered subcontractors by making officers, directors, and managing agents personally liable when such agents knowingly use monies held in trust improperly.  A recent case by the Maryland Court of Special Appeals clarified the applicability of the Maryland Construction Trust statute, limiting…

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The Seven-Day Time Limit to File a Bid Protest Begins to Run when the Protestor Knew or Should Have Known a Basis for a Bid Protest

The Maryland State Board of Contract Appeals (“MSBCA”) determined that it did not have jurisdiction to hear the Supplemental Bid-Protest Appeal (the “Protest”) because the protestor did not file the Protest in a timely manner.  That is, the protestor did not file the Protest within seven days’ time, as required by COMAR 21.10.02.03B.  MSBCA stated…

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“Good Faith” Efforts to Include MBE Goals in a Bid

In Turlington Valuation Associates, Inc., MSBCA No. 2959 at 1 (May 11, 2016), the Maryland State Board of Contract Appeals (“MSBCA”) denied the appeal of Turlington Valuation Associates, Inc. (“Turlington”) after Turlington failed to make good faith efforts to meet the Minority Business Enterprise  (“MBE”) goals.  In its appeal, Turlington sought a waiver for the…

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What Does Senate Bill 311 Mean for Architects and Engineers?

On October 1, 2017, Senate Bill 311 (“S.B. 311”) becomes effective.  S.B. 311 repeals Md. Code Ann., State Fin. & Proc. §§ 3-301 et seq., addressing the proposal and bidding process for architectural and engineering services for Maryland State projects, and enacts what will become Md. Code Ann., State Fin. & Proc. §12-112 (“§ 12-112”). …

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