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Sub Recovers Delay Damages From Miller Act Bond Bonds-payment; Delay-damages

Saturday, April 03, 2004 12:34 pm

 
Sub Recovers Delay Damages From Miller Act Bond Bonds-payment; Delay-damages

A federal appeals court has ruled that a subcontractor could recover delay damages from a Miller Act payment bond regardless of the prime contractor's lack of fault. And the sub was allowed to use the "total cost"method to quantify its damages.

The federal government awarded a contract to Wayne M. Roberts, Inc. for a renovation project in St. Louis, Missouri. Roberts furnished a payment bond, pursuant to the Miller Act, issued by U.S. Fidelity & Guaranty Co. Roberts subcontracted the electrical work to Lighting & Power Services, Inc. (LPS).

The renovation [...]

 
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