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Quality Assurance Sub Not Liable To Contractor's Surety Termination-default; Bonds-performance

Thursday, June 03, 2004 01:12 pm

 
Quality Assurance Sub Not Liable To Contractor's Surety Termination-default; Bonds-performance

A federal court has ruled that the surety of a defaulted contractor could not recover against the contractor's quality assurance subcontractor.

The U.S. Navy awarded a contract to Paint City Contractors, Inc. to repair and paint eight oil tanks located in Portsmouth, Virginia. Paint City furnished payment and performance bonds issued by The Hanover Insurance Company.

Under the terms of the Navy contract, Paint City was required to hire quality assurance services. Paint City awarded a subcontract to Corrpro Companies, Inc. to furnish a full-time quality [...]

 
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