May brings highest monthly increase in construction jobs on record | 10 actions for contractors to mitigate exposure to suits when reopening | Detailed, separate records can reduce risk of PPP loan fraud claims
June 10, 2020
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Targeted news for surety, construction, and allied professionals
The construction sector saw its net jobs rise by 464,000 in May, amounting to the largest monthly increase recorded by the federal government, according to an analysis of Bureau of Labor Statistics data. The sector's unemployment rate was 12.7%, a decline of 3.9 percentage points from April but an increase of 9.5 percentage points year-over-year.
Contractors who are reopening offices amid the coronavirus pandemic should consult with an attorney and develop a thorough plan for returning to work, two attorneys write. Those steps are among 10 that they recommend as an "essential to-do list" to avoid lawsuits when reopening.
Expect the Unexpected: The Importance of a Solid Continuity Plan Growing up in a family that owned an electrical contracting business, I was always surrounded by a strong work ethic and dedication to the business. While my role was focused on pulling wire, bolting on stadium light pegs in the middle of winter, and sweeping floors, the heartbeat of the company was my father. LEARN MORE
Companies that have received Paycheck Protection Program loans need to take steps to protect themselves against allegations of loan fraud, an attorney writes. Those steps include retaining a dedicated file of detailed records related to PPP funds, she writes.
A truck driver trade group has submitted comments seeking the rejection of a coalition's request for an exemption from a $75,000 bond requirement for brokers of property and freight forwarders. The truck driver group's CEO said exemptions "would further encourage a longstanding practice of defrauding professional truck drivers and motor carriers."
The Paycheck Protection Program Flexibility Act, signed into law last week, allows the program to run through Dec. 31 instead of the previous June 30 expiration date. The law's key changes include a five-year minimum maturity for PPP loans; a 24-week "covered period" when PPP funds can be used, rather than the previous eight weeks; and allowing as much as 40% of loan proceeds to be spent on non-payroll costs.
NASBP Blog: A look at COVID-19 impacts on the construction industry
(Al Bello/Getty Images)
The COVID-19 pandemic impact is felt across the construction industry, but the extent of that impact varies depending on multiple factors -- such as location and types of projects, availability of materials, and more. In this NASBP Blog, three attorneys from Holland & Knight LLP discuss the short-term and long-term impacts of COVID-19 on the industry, and how to best prepare. They cover reviewing contracts, giving notice to contractual partners, force majeure, subcontractors, supply chain issues, workplace safety, suspension and termination. Read more.
June 17 NASBP Virtual Seminar: Business Interruption under COVID-19
Clockwise from top left: Russo, Allen, Saxe and Wilson (NASBP)
Join us for the next NASBP Virtual Seminar on at 2 p.m. Eastern on Wednesday, June 17. "Business Interruption under COVID-19" will feature a panel of professionals: Frank Russo of Procor Solutions + Consulting, Lynn Allen of Tyson & Mendes, Sheri Wilson of Lockton Companies, and Tracy Alan Saxe of Saxe Doernberger & Vita, P.C. They will discuss a myriad of timely topics, beginning with an overview of property insurance coverage; the requirements for coverage including conditions, exclusions and typical first-party property coverages that may reimburse business interruption losses; and approaches to claim prep and document losses. They will then dive into issues related to the current COVID-19 pandemic and provide a legal perspective on COVID-19 and non-COVID-19 policy coverage and claim prep as well as judicial predictions on COVID-19 as property damage, application of exclusions, prospective and retroactive legislative changes, and funding for losses. Register for this stand-alone Virtual Seminar or register for the NASBP 2020 Virtual Seminar Annual Subscription, the entire set of NASBP Virtual Seminars for 2020, and save! This NASBP Virtual Seminar is sponsored by Old Republic Surety. Register.
NASBP's podcast "Let's Get Surety" gives case study on cooperative claim efforts
"Let's Get Surety" co-host Kat Shamapande, left, and Pasquariello (NASBP)
A contractor based in Tulsa, Okla., has agreed to pay $2.8 million to settle a lawsuit in which it was accused of False Claims Act violations. According to the lawsuit, the contractor created affiliate companies that bid for federal set-aside contracts intended for disadvantaged small businesses.
We're all capable of climbing so much higher than we usually permit ourselves to suppose.
Octavia E. Butler, writer
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.