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Supplier Cannot Sue Owner For Failure To Obtain Bond Bonds-payment; Suppliers

Friday, December 03, 2004 03:20 pm

 
Supplier Cannot Sue Owner For Failure To Obtain Bond Bonds-payment; Suppliers

The Alaska Supreme Court has ruled that an unpaid supplier could not sue a public project owner that did not obtain a payment bond from a prime contractor.

The Lower Kuskokwim School District awarded a contract to Clifton Shannon, doing business as Arctic Construction Enterprises, to deliver, assemble and install two panel houses. The contract stated that Arctic would not be providing a payment bond pursuant to Alaska's "Little Miller Act," AS 36.25.010.

Arctic Construction purchased the prefabricated house packages from Imperial Manufacturing Ice Co [...]

 
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