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Joint Check Arrangement Gave Sub Direct Claim Rights Subcontractors; Payment; Claims Administration

Monday, May 03, 2004 01:00 pm

 
Joint Check Arrangement Gave Sub Direct Claim Rights Subcontractors; Payment; Claims Administration

The Armed Services Board of Contract Appeals has ruled that the government's agreement to issue a joint check, naming a subcontractor as a payee, conferred direct appeal rights on the subcontractor under the Contract Disputes Act.

The Navy awarded a $42,000 contract to G. M. & W. Construction Corp. to install floor coating in warehouse bays at the Marine Corps Logistics Base in Albany, Georgia. No payment bond was required. G. M. & W. subcontracted most of the work to FloorPro, Inc.

FloorPro performed the work and submitted an invoice to G. M. & W. The prime contractor failed to make payment. FloorPro complained to the Navy contracting officer who contacted the president of G. M. & W. The Navy and the contractor then agreed that [...]

 
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