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No Complexity Test Needed For Qualification As Subcontractor Under Miller Act

Friday, January 04, 2008 02:12 pm

 
No Complexity Test Needed For Qualification As Subcontractor Under Miller Act

The U.S. Court of Appeals ruled that a supplier was entitled to compensation under the Miller Act because it had a contract to supply a firm that, in turn, qualified as a subcontractor under the act -- despite the lack of significant customization or complexity involved in the services delivered.

Pyramid Enterprises, Inc. (Pyramid) was the prime contractor in performing design and construction work on a C-17 Maintenance Hangar and Shops facility at the McGuire Air Force Base for a contract with the United States Army Corps of Engineers originally priced at over $24 million. Pyramid purchased custom fabricated structural steel for the building's framework from Havens Design-Build (Havens), using a standard form purchase order. Havens contracted with E & H Steel Company (E&H) to fabricate the steel and deliver it to the site.

Pyramid issued a payment bond in fulfillment of the Miller Act, 40 U.S.C. 3131(b)(2). Havens entered bankruptcy and defaulted on its payment to E&H. E&H sued Pyramid and its sureties under 3133(b)(2), whi [...]

 
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