Douglas L. Patin, Aron C. Beezley and Amandeep S. Kahlon | Buildsmart The Miller Act protects subcontractors from nonpayment on federal projects by requiring prime contractors to issue payment bonds. To obtain relief under the Miller Act, a subcontractor must (1) give the prime contractor written notice of its claim within 90 days of the… Continue reading Timing Is Everything: Miller Act Notice Defect Saves Surety
Tag: Payment Bond
When Subcontractors Sue Only the Surety on Payment Bond and Tips for General Contractors
Ira M. Schulman and Emily D. Anderson | Pepper Hamilton | June 17, 2019 Payment bonds have been a staple of public construction projects since 1874, when the U.S. Congress first passed the Heard Act, which required that contractors obtain payment bonds for public projects to ensure that subcontractors and material suppliers have a way… Continue reading When Subcontractors Sue Only the Surety on Payment Bond and Tips for General Contractors
General Indemnity Agreement Can Come Back to Bite You
Christopher G. Hill | Construction Law Musings | August 12, 2019 I talk about payment bonds often here at Construction Law Musings. I talk a bit less about performance bonds and even less about the General Indemnity Agreements (GIA) that are signed by companies and their principals as part of the agreement between a construction company and… Continue reading General Indemnity Agreement Can Come Back to Bite You
The Problem with Weak Payment Bond Defenses
Stanley A. Martin | Commonsense Construction Law | July 26, 2019 A payment bond surety whose principal may be insolvent is caught in a difficult spot. But a Connecticut court decision dealt a major blow to a surety who tried to rely on a series of special defenses, none of which stood up to the… Continue reading The Problem with Weak Payment Bond Defenses
Payment Bond Does Not Cover Claim for Lost Work Opportunity
Stan Martin | Commonsense Construction Law LLC | March 8, 2018 A subcontractor claiming that the general contractor failed to use and pay for a minimum number of workers made a claim against the GC’s payment bond, for the value of the workers not hired. A federal court has held that the Miller Act bond… Continue reading Payment Bond Does Not Cover Claim for Lost Work Opportunity