The Department of Justice has settled and obtained judgments in excess of $2.8 billion for false claims against the government last year. Over $2.1 billion of these cases arose from lawsuits filed under the qui tam provisions of the False Claims Act which incentivizes whistleblowers to file claims. Government contractors in the construction industry – both primes and subcontractors – face a higher risk of FCA liability because of the complicated nature of construction contracts and prevailing wage obligations. Below we discuss the top FCA issues facing construction contractors and protection strategies for avoiding them.
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Building Compliance: Construction Industry Concerns Under FCA
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