The distinction between a subcontractor and a supplier of materials or equipment is sometimes blurred. Subcontractors perform construction work at the site. Suppliers have a more limited role at the site, typically delivering their product and sometimes installing it. The difference is more than semantic—it can affect rights to mechanic’s liens and payment bond coverage. It can also have an impact on licensing requirements.
A California company designed and furnished custom wine cellars. The general contractor discovered the company did not have a contractor license and attempted to use the unlicensed status to recoup payments it had made. The wine cellar company said it had merely installed the equipment it had delivered; however, a court ruled this was no “plug-and-play” situation.
The second case in this issue involves the authority of a project architect to block final payment after substantial completion and use and occupancy by the public project owner. The construction contract made architect approval a precondition to the final payment release, so the matter came down to the scope of the architect’s discretion.
The third case addresses a bid protest about a municipal project owner that mishandled procurement in a number of ways but showed no indication of favoritism or malintent. A Connecticut court expressed reluctance to impose its judgment and supersede the contract award decision of the municipality.
