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Subcontractor Punished For Payment Deal Subcontractors; Payment

Saturday, December 03, 2005 04:41 pm

Subcontractor Punished For Payment Deal Subcontractors; Payment

A Missouri court has upheld a punitive damage assessment against a subcontractor that went over the prime contractor's head to recover payment directly from the project owner.

St. Johns Regional Medical Center awarded a contract to Environmental Energy Partners, Inc. (EEP) for extensive renovation of a facility. EEP subcontracted the HVAC work to Siemens Building Technologies, Inc. The subcontract called for EEP to make periodic payments to Siemens as the prime contractor received payment from the project owner for Siemens' work.

At the conclusion of the project, the [...]

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