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The construction industry is all too familiar with its perception as a means by which individual and corporate citizens alike may experience economic opportunity. Whether at the federal, state or municipal level, set-aside programs exist to give small, local and other discrete businesses the ability to compete for lucrative construction contracts. Efforts to support local business and increase the employment of residents are important to strengthen local economies. However, it is worthwhile to reevaluate government participation in the contractor selection process to ensure the goals of set-aside programs do not produce unintended results.

In the Washington, D.C. metropolitan area there are a variety of programs that allow for small businesses, local businesses, minority-owned, female-owned, disadvantaged and veteran-owned businesses to participate in construction projects in which states and municipalities are market participants. Among the federal government, D.C. government, and governing bodies in the counties of Prince George’s, Montgomery, Arlington, Alexandria, Fairfax, Prince William and Loudoun, there is a deliberate push to create jobs for residents and local businesses. The benefits are obvious. An increased tax base and productivity builds better communities. But can more be done for the corporate participants?

Here is a new sampling of cases in which the Virginia Supreme Court has recently granted appeals.

In April, the Court granted the petition for appeal in Studio Center Corporation v. WKW Construction, LLC, Record No. 092257, challenging the ruling of Judge Shockley from the Circuit Court of the City of Virginia Beach. Studio Center is contesting Judge Shockley’s holding that Virginia Code Section 54.1-1115(C) applied when the unlicensed contractor admitted it knew Virginia law required a license, but did not realize that it could not use someone else’s license. This case should give us some much needed guidance on Section 54.1-1115(C)’s requirement of “good faith” and “actual knowledge.”