Building Profits — the magazine for the Construction Financial Management Association — recently published an article written by Attorney David Cook. Read the False Claims Act: What CFMs Need to Know.
Recent amendments to the False Claims Act (FCA) 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).
This article identifies key risks under the FCA, along with suggestions for mitigating these risks. In addition, it focuses on the FCA from the standpoint of financial managers, discussing important cost-accounting principles, claims presentation, and cost recovery.
Read False Claims Act: What CFMs Need to Know by clicking here.
