AHC attorney David Cook authored an article on the False Claims Act that will appear in the next edition of Building Profits, the magazine of the Construction Financial Management Association. The article identifies many risks arising from the False Claims Act, and specifically discusses those that impact construction financial managers and accountants.
Recent amendments to the False Claims Act have eased requirements for recovery against contractors and subcontractors by the government and whistleblowers. By eliminating previously existing “intent” and “presentment” requirements, these amendments have substantially increased contractors’ and subcontractors’ exposure to liability under the FCA – which permits the government to recover three times the resulting loss (i.e., treble damages). Contractors, subcontractors, and especially their accountants and financial managers should evaluate and pay close attention to the requirements of the FCA so that they can avoid potential liability under the FCA.
The article focuses on cost-accounting issues that arise from the False Claims Act. It discusses important cost-accounting rules promulgated in the Federal Acquisition Regulations, which are generally applicable to federal projects or other projects which are fully or partially funded with federal dollars. These issues are particularly important to financial managers and accountants.
Look for the next edition of Building Profits and this timely and relevant article. You can also sign up for updates to AHC’s Construction Law Blog to receive an e-mail when the article is published.