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Payment Bond Did Not Cover Performance Deficiency Bonds-payment

Monday, June 02, 2003 02:58 pm

 
Payment Bond Did Not Cover Performance Deficiency Bonds-payment

An Arizona court has ruled that a prime contractor could not recover from a subcontractor's payment bond for additional labor costs incurred as a result of the sub's inadequate staffing.

D. L. Withers Construction, L.C. was the prime contractor for construction of Pinnacle High School. Withers subcontracted the heating, ventilation and air conditioning work to 1st Mechanical, Inc. of Arizona.

The subcontract included a provision requiring Mechanical to furnish payment and performance bonds in the full subcontract amount. But prior to signing the agreement, [...]

 
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