{"id":903215,"date":"2024-08-28T16:13:16","date_gmt":"2024-08-28T22:13:16","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903215"},"modified":"2024-08-28T16:13:58","modified_gmt":"2024-08-28T22:13:58","slug":"colorado-prompt-payment-act-designer-qualifies-as-subcontractor","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/colorado-prompt-payment-act-designer-qualifies-as-subcontractor\/","title":{"rendered":"Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act"},"content":{"rendered":"\n<p>John Mark Goodman | <a href=\"https:\/\/www.buildsmartbradley.com\/2024\/08\/designer-qualifies-as-subcontractor-under-colorado-prompt-payment-act\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=0bbe418803-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-0bbe418803-78863422\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BuildSmart<\/a><\/p>\n\n\n\n<p>The court in\u00a0<em>AECOM v. Flatiron<\/em>\u00a0was back at it last week with rulings on the parties\u2019 post-trial motions.\u00a0As you may recall, the case was tried to a jury earlier this year.\u00a0The jury returned\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/2024\/04\/court-confirms-jury-verdict-for-aecom-in-i-70-construction-dispute-with-flatiron\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">a verdict for AECOM<\/a>\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/2024\/04\/court-confirms-jury-verdict-for-aecom-in-i-70-construction-dispute-with-flatiron\/\">in the amount of $5<\/a>\u00a0million. Flatiron\u2019s\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/2024\/01\/the-modified-total-cost-method-to-calculating-construction-damages\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">modified total cost counterclaim<\/a>\u00a0in the amount of $250 million was rejected.\u00a0AECOM\u2019s post-trial motion sought to add $2.5 million in prejudgment interest and another $4 million in \u201cpenalty interest\u201d under the Colorado Prompt Payment Act.\u00a0That law allows \u201csubcontractors\u201d to receive at least 15% interest if a contractor fails to pay its subcontractor within seven calendar days of receiving payment.\u00a0The question was whether AECOM, a designer, qualified as a \u201csubcontractor\u201d within the meaning of the act, which defines contractor as \u201cany person, company, firm, or corporation which is a party to a contract with a contractor to construct, erect, alter, install, or repair any highway,\u2026and which, in connection therewith, furnishes and\u00a0<strong>performs on-site labor<\/strong>\u00a0with or without furnishing materials\u201d C.R.S. \u00a7 24-91-102(4) (emphasis added).\u00a0Flatiron argued that AECOM was not a subcontractor because, as a designer, it performed no on-site labor.\u00a0<\/p>\n\n\n\n<p>Based on the evidence presented at trial, the court found that AECOM did perform some on-site labor and therefore could potentially recovery penalty interest under the Colorado Prompt Payment Act.&nbsp;However, the court held that AECOM could not recover such interest in this case because it failed to present evidence as to when Flatiron had been paid for AECOM\u2019s work.&nbsp;Having presented no evidence on that issue, AECOM could not meet its burden of proof as to the amount of penalty interest owed.&nbsp;The court declined to reopen the record to receive evidence on that issue, reasoning as follows:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>In its discretion, the Court concludes that ATS had a chance to present evidence supporting its request for penalty interest at trial and failed to adequately do so. Reopening the evidentiary record in a case that was tried to a jury after the jury has issued its verdict in no small thing in American jurisprudence. It is a step that would almost most certainly raise important Seventh Amendment issues. The Court will not here engage in such an undertaking. The Court perceives no fundamental miscarriage of justice to hold ATS to the evidence it adduced at trial, and no more. ATS will not receive a second bite at the apple on the issue of penalty interest.<\/p>\n<\/blockquote>\n\n\n\n<p>The court did award AECOM prejudgment interest in the amount of $2.5 million.\u00a0A copy of the court\u2019s opinion is available\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/wp-content\/uploads\/sites\/34\/2024\/08\/039111436116.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">here<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>John Mark Goodman | BuildSmart The court in\u00a0AECOM v. Flatiron\u00a0was back at it last week with rulings on the parties\u2019 post-trial motions.\u00a0As you may recall, the case was tried to a jury earlier this year.\u00a0The jury returned\u00a0a verdict for AECOM\u00a0in the amount of $5\u00a0million. Flatiron\u2019s\u00a0modified total cost counterclaim\u00a0in the amount of $250 million was rejected.\u00a0AECOM\u2019s&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/colorado-prompt-payment-act-designer-qualifies-as-subcontractor\/\">Continue reading <span class=\"screen-reader-text\">Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,12072,157],"class_list":["post-903215","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-colorado-prompt-payment-act","tag-subcontractor","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Designer Qualifies as Subcontractor Under Colorado Prompt Payment Act - Advise &amp; 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