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Owner And Prime Not Liable For Lack Of Payment Bond Bonds-payment; Subcontractors

Wednesday, April 02, 2003 01:02 pm

 
Owner And Prime Not Liable For Lack Of Payment Bond Bonds-payment; Subcontractors

A federal court has ruled that an unpaid lower-tier subcontractor had no claim against the Postal Service or the prime contractor for the failure to obtain or furnish a Miller Act payment bond.

The U.S. Postal Service awarded a contract to Lockheed Martin Corp. to furnish and install automated parcel sorting equipment at a postal facility in Kansas City, Missouri. Lockheed Martin subcontracted a portion of the installation to WestPac Electric, Inc. WestPac in turn awarded a subcontract to Tradesmen International, Inc. to provide labor.

WestPac became insolvent, leaving Tr [...]

 
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