Recently, the Massachusetts School Building Authority (“MSBA”) reviewed its policy regarding the reimbursement of a limited category of legal fees ONLY for Waiting List and Prior Grant projects authorized by the Department of Education, as described in section 45 of chapter 208 of the Acts of 2004, for which the MSBA conducts an audit pursuant to section 48 of chapter 208 of the Acts of 2004. The MSBA has been reviewing project files and has contacted communities with Prior Grant or Waiting List projects under the Maximum Allowable Cost that may have legal fees eligible for reimbursement pursuant to the MSBA’s policy.
The result of this review is that some of the legal fees which were submitted as part of a project audit may be eligible for reimbursement if the MSBA determines that the fees (1) were incurred to successfully enforce construction contract rights, and (2) are reasonable in amount and were prudently incurred. Legal fees related to administrative activity and general municipal counsel work, statutory compliance issues, real estate and title issues, review of change orders, review of direct payment demands, drafting bid packages and contracts, negotiating contracts, and other fees unrelated to the successful enforcement of construction contract rights are not eligible for reimbursement. Please click on the links below to view a complete copy of the policy and the questionnaire.
MSBA Legal Fees Policy
MSBA Legal Fees Questionnaire
If you have any questions, please do not hesitate to contact Steve Marsters at 617-720-4466. Thank you.