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Article Date: 06/21/2013


Subs Allowed to Collect from Owner that Failed to Require Payment Bond


Subcontractors are intended beneficiaries of a state statute requiring public project owners to obtain payment bonds from prime contractors. If an owner fails to do so, an unpaid sub may sue the owner for payment under a theory of breach of contract. Recovery is limited to the undisbursed prime contract balance.

 



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