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Contractor Cannot make Performance Bond Claim when it Failed to Terminate its Subcontractor

by Kent Holland | Apr 27, 2021 | Newsletter Article

GC barred from recovering from the surety for damages allegedly incurred due to faulty work of subcontractor because it failed to meet the conditions precedent to the performance bond responsibility.  The surety bond expressly provided that obligations of the surety...

Indemnification is only for Third Party Claims Unless Clause Expressly States it applies to First Party Damages

by Kent Holland | Mar 1, 2019 | indemnification clause, Newsletter Article

An indemnification clause will only apply to liability for claims brought by third parties. It will not apply to claims between the contracting parties. In Florida, a contract’s general indemnity clause does not apply to first party claims for costs and expenses...

Prime Contractor Liable for Failing to Pay Sub Full Amount the Prime Received from Government for the Sub’s Work

by Kent Holland | Jan 13, 2016 | Newsletter Article

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...

Subcontractor’s Waiver of Claims Against Payment Bond is Void and Unenforceable

by Kent Holland | Feb 18, 2013 | Newsletter Article

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...

Common Law Indemnity Allows Surety to Maintain Claim against Architect for Loss Allegedly Caused by Architect’s Negligence

by Kent Holland | Oct 9, 2012 | Newsletter Article

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,...
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