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When Payment Protections Fall by the Wayside, Subcontractors Bear the Brunt
| 题名： | When Payment Protections Fall by the Wayside, Subcontractors Bear the Brunt |
| 正文语种： | eng |
| 作者： | Michael C. Loulakis;Virginia. Lauren P. McLaughlin |
| 作者单位： | Capital Project Strategies LLC in Reston;Smith Currie & Hancock LLP in Tysons Virginia |
| 摘要： | There are myriad ways in which public and private owners seek to ensure that subcontractors and suppliers get paid for their work. Every state has some type of mechanic s lien statute that, in general, enables an entity providing improvements to a property to place a lien on that property if it is not paid. Many states also have construction trust fund and/or prompt payment statutes. However, perhaps the most common form of payment protection is through a payment bond, whereby a surety will financially guarantee the general contractors payment obligations to subcontractors and suppliers. This is especially important on public projects for which government land cannot be liened. The obligation for general contractors to post payment bonds on federal projects is codified in the Miller Act, and most states have so-called Little Miller Acts that serve the same function. What happens, however, when the government does not enforce the requirement for a bond and subcontractors go unpaid? This issues case, Constructora Guzman S.A. v. the United States, addresses this situation on a federal project in which the subcontractor sued the government, arguing that its actions in waiving the bond requirement created a legal obligation for the government to pay the unpaid subcontractors. |
| 出版年： | 2023 |
| 期刊名称： | Civil Engineering |
| 卷： | 93 |
| 期： | 3 |
| 页码： | 18-19 |
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