Should Contractors be Permitted to Recover Payroll & Expenses Forgiven under SBA PPP Loan Program
May 6, 2020
It is widely accepted that costs of labor, including payroll taxes, insurance and union fringes are defined as reimbursable costs of the work incurred by the contractor in its performance of the Work. Under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) many contractors will receive loans equivalent to 2.5 times qualifying monthly payroll and if certain requirements are met, may have these loans forgiven. This article examines the issues concerning whether the contractor should be permitted to recover payroll and expenses forgiven under the SBA PPP loan program as part of the change order or contract claims process.
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Resolution Management Consultants, Inc. (RMC) is a nationally recognized consulting firm headquartered in Marlton, NJ, specializing in avoiding, minimizing or resolving problems that may evolve during the design and construction process. Founded in 1993 by veterans in the construction contracting and engineering professions, RMC has assisted numerous private owners, public (city, state and federal) agencies and contractors in either achieving project goals or resolving cost and time disputes between the contracting parties. The collective experience of our professional staff encompasses all phases of the design and construction process, including engineering, construction management, and accounting. For more information on RMC, please visit our website at www.resmgt.com.
James F. Gallagher/Jeffrey B. Kozek
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