Kent Holland, J.D. ConstructionRisk, LLC A subcontractor performing masonry work for renovations of buildings at the Langley Air Force Base recovered in a breach of contract action against the Prime Contractor who, after receiving full payment for the subcontractor’s...
Whereby the terms of its contract, a subcontract waived its rights to make a claim against the prime contractors payment bond, the Supreme Court of Massachusetts held the waiver to be contrary to public policy and, therefore, void and unenforceable. In Costa v. Brait...
Where a General Contractor that entered into a contract with a nursing home was required to have a performance bond from a surety company (Safeco) and was default terminated by the project owner, the surety completed the project and sued the “obliges” under the bond,...
What a difference 12 months make! In the late spring of 2000, the news was the continued profitability of the surety business with expectations that, as long as the construction economy continued to grow, conditions in the surety market would continue to be favorable...
Bidders on most sealed-bid federal contracts are required to furnish a bid guarantee along with their bids. The bid guarantee is usually provided in the form of a bid bond issued by a Treasury-listed surety company. The purpose of the bid bond is to guarantee the...
When the U.S. Government terminated a contractor for failure to perform in accordance with the contract provisions, the contractor’s surety asserted that the termination was wrongful and refused to pay on the performance bond. After much litigation it was held...
Sureties play a vital role in public construction projects. As a result, many states have enacted statutory guidelines regulating how insurance companies and sureties administer claims made on their policies or bonds. Massachusetts is one such state that has enacted...
A subcontractor worked on a project for five months without being paid and then sued the A/E for negligence, claiming that the A/E owed it a duty, as a third party beneficiary, to assure that the contractor maintained a payment bond or paid the subcontractor before...
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