Citing Virginia's false advertising law, a federal judge has ordered IBCS, the big individual surety operated by Edmund G. Scarborough, to return a $138,000 bond premium to a contractor. The judge last month granted the motion for summary judgment against Charlottesville-based IBCS, Scarborough and former IBCS employee Steven Golia.Plaintiff American Demolition and Nuclear Decommissioning filed a lawsuit in federal district court in Charlottesville in December 2011. ADND stated that it was led to believe by IBCS marketing materials and assurances from Scarborough and Golia that the bonds provided by IBCS would be good enough to be accepted under Federal Acquisition
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.