Here at Construction Law Musings, I have often discussed payment bond claims under the federal Miller Act and its state specific analogs (so called “Little Miller Acts“). Most of these discussions have assumed without actually stating that the surety carrying the payment bond would be solvent and available to pay any judgment against it. Unfortunately, […]
No Recoupment Defense to Supplier’s Miller Act Claim
We’re back on the Miller Act train here at Musings. Recently, the Alexandria, VA Federal District Court revisited the issue of whether the failure of a subcontractor to pay its supplier provides a general contractor and its surety with a defense to a Federal Miller Act bond claim. The short answer is “No.” In U.S. […]
Why Contractors Should Notify Bonding Companies Quickly
With the rise in federal and state construction projects, and the need for contractors and other construction professionals to seek out these projects in the present economy, focus on the Miller Act and your state’s “Little Miller Act” is key. As a quick reminder, the Miller Act essentially requires that a general contractor carry a […]
Read Your Construction Contract Arbitration Clauses Carefully
In May of last year, we discussed an opinion in U.S. ex rel. Thyssenkrupp Safway Inc. v. Tessa Structures LLC. If you recall, this case involves a three way payment dispute between a supplier, Thyssenkrupp, a subcontractor, Tessa Structures, and a general contractor, Vista Contracting. As discussed in the prior post, Thyssenkrupp did not get […]