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No Remedy When Payment Bond Proved Bad Bonds-payment; Subcontractors

Monday, April 03, 2006 06:08 pm

No Remedy When Payment Bond Proved Bad Bonds-payment; Subcontractors

A South Carolina court has ruled that the state Department of Transportation had no obligation to subcontractors to assure the viability of a prime contractor's payment bond.

The South Carolina Department of Transportation awarded a highway contract to Southco Grassing, Inc. The contractor furnished a payment bond in accordance with the requirements of South Carolina's "Little Miller Act,"S.C. Code sec. 57-5-1660. The bond was issued by Amwest Surety Insurance Co., a company licensed to do business in South Carolina and recognized as qualified by the DO [...]

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