Oh Where, Oh Where, Oh Where Have the Indiana Recovery Act Dollars Gone?

It has been over two years since the completion of the first construction project funded through the American Recovery and Reinvestment Act (“Recovery Act”).  In July 2009, the Indianapolis Executive Airport’s runway was reconstructed at a cost of approximately $3.4 million.  As of June 30, 2011, Indiana is set to receive more than $4.5 billion in Recovery Act funding.  Of this amount, Indiana has already received $3,258,419,927.  So how has our share been allocated and spent?

Before detailing how Recovery Act funds were dispersed in Indiana and in order to bring context to these dollar amounts, it is helpful to review the overall nation-wide distribution of all Recovery Act funds.  Recovery Act funding is broken down into three basic categories:  (1) Tax Benefits; (2) Contracts, Grants & Loans; and (3) Entitlements.

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CITY OF INDIANAPOLIS PREPARES FOR DEEP ROCK TUNNEL CONNECTOR BID

The City of Indianapolis will host a pre-bid conference on July 22, 2011, for the Deep Rock Tunnel Connector project.  Read More ›

Northern District of Ohio Finds Supplier of Crushed Stone Backfill Not To Be a "Subcontractor" Within the Meaning of an Insurance Policy

In Mosser Construction, Inc. v. The Travelers Indemnity Company, 2009 Westlaw 3426484 (N.D. Ohio), October 26, 2009, the district court determined that a supplier of crushed stone backfill to a general contractor was not a “subcontractor” within the meaning of an insurance policy, but was rather a “material supplier,” and as a result the general contractor was not entitled to defense or indemnification from the insurance company. Read More ›

Federal Appellate Court Concludes Unreasonable Delay Equates to Material Breach of Construction Contract

When does a delay in performance become so unreasonable as to constitute a material breach of the contract and excuse future performance by the non-breaching party? The United States Court of Appeals for the Seventh Circuit recently addressed what evidence should be examined to determine if a delay in a party’s performance equates to a material breach in the absence of specific dates for performance. International Production Specialists, Inc. v. Schwing America, Inc., No. 07-3632, 2009 Westlaw 276 7143 (7th Cir. September 2, 2009) Read More ›

FBT Client Completes Stimulus Project Ahead of Schedule

The Harper Company successfully performed work on what is believed to be the first project funded by the American Recovery and Reinvestment Act (“AARA”) to be completed in the nation. Harper reconstructed a runway at the Indianapolis Executive Airport in 43 days, 19 days ahead of schedule and below budget. Harper removed existing asphalt pavement and placed 10” thick P-501 concrete pavement on existing sub-base. The project was advertised for bids on April 6, 2009 and construction was completed and the runway was reopened on June 19, 2009. The project was estimated to cost $4.3 million. Harper submitted its winning bid at $3.4 million.

Search Twice, Foreclose Once

The old adage of "measure twice, cut once" can be appropriately adapted to lien foreclosure actions. Failing to identify all lienholders, including those considered to be junior lienholders, and naming them as parties to a foreclosure action can be costly. A bank recently learned this valuable lesson. In Deutsche Bank National Trust Co. v. Mark Dill Plumbing Co., 903 N.E.2d 166 (Ind.Ct.App. 2009), the bank foreclosed on its mortgage without adding three junior judgment lienholders to the foreclosure action. After the bank purchased the property at a Sheriff’s sale, it learned of the junior lienholders. In order to quiet title on the property, the bank filed an action to remove the judgment liens belonging to the junior lienholders. The junior lienholders requested that the bank's equity of redemption be foreclosed and another Sheriff's sale be held to satisfy the amounts owed to them. Read More ›

Joint Venturers: Will You Have To Share in the Liabilities of a Troubled Project?

Simply defining a contractual relationship as a joint venture may not be enough to share in the liabilities of a troubled project. The Indiana Court of Appeals recently issued a published decision defining what it means to be a joint venture in Indiana. (See DLZ Indiana, LLC v. Greene County, Indiana; link: http://www.ai.org/judiciary/opinions/pdf/03120902.ewn.pdf) In 2001, Greene County, Indiana, entered into an agreement with United Consulting Engineers & Architects and DLZ of Indiana, LLC (collectively the “Firm”) for design services. The agreement provided that United and DLZ entered into the agreement “jointly and in collaboration.” Read More ›

President Obama's Economic Stimulus Package: Are Your Ducks in a Row?

The inaugural concerts, speeches and parties are over. It is now time for President Obama and Congress to focus on the much anticipated $800 billion economic stimulus package that promises to infuse federal funds into the country's infrastructure. While the details and timing of the economic stimulus bill are still being decided, there is little doubt that a significant amount of federal dollars will become available to the construction industry. The most likely recipients of the funds are those who have invested time and resources to ensure that all of their ducks are in a row. Read More ›