False Claims: Road Embankment Construction Proves to Be a Slippery Slope for Contractors

摘要

Many construction companies have built their reputations and coffers working on large public sector projects. While the rewards can be great, working for public agencies is not without risk; particularly if a contractor's intentions are less than honorable. Daewoo Engineering and Construction, a major international contractor recently learned this lesson the hard way. In what can only be described as a stinging decision, the US Court of Federal Claims ruled in Daewoo Engineering and Construction Co., Ltd. V. United States 73 Fed. Cl. 547 (2006) that Daewoo had knowingly submitted "false or fraudulent claims with an intent to deceive or mislead the government" in violation of the False Claims Act ("FCA") and the Contract Disputes Act. ("CDA") The verdict may end up costing Daewoo Engineering more than $50 million.