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Subs Sue Owner For Failure To Obtain Bond Bonds-payment; Subcontractors

Friday, December 03, 2004 03:20 pm

 
Subs Sue Owner For Failure To Obtain Bond Bonds-payment; Subcontractors

An Illinois court has ruled that unpaid subcontractors could sue a public project owner that had failed to obtain a payment bond from the prime contractor.

The Village of Merrionette Park awarded a contract to Winterset Construction, Inc. to build a new police station. An Illinois public works bond statute, 30 ILCS 550/1, required the Village to obtain a payment bond from the contractor for the protection of parties furnishing labor or materials to the project. The Village, however, failed to do so.

Winterset awarded a number of subcontracts with regard to the project. It was undisputed that the subcontractors [...]

 
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