Shopping Cart (0) items Sign In

Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

‹ Prev article: 
 

To Get Paid, Surety Must Inform Govt. Of Contractor Default

Sunday, October 04, 2009 06:15 pm

 
To Get Paid, Surety Must Inform Govt. Of Contractor Default

When a contractor defaulted and the surety stepped in to make payments, the government did not have to pay the surety until it specifically notified the government that the contractor was in default -- even if the government already knew.

In 2001, the United States Postal Service (the Postal Service) hired Selpa Construction & Rental Equipment Corporation (Selpa) to build a post office in Puerto Rico for $2.6 million. Selpa obtained the required bonds from United Surety & Indemnity Company (United Surety). United Surety provided a $1-million payment bond and a $2-million performance bond. The indemnity agreement between Selpa and United Surety gave United Surety the right to control any matters connected with the underlying construction contract in order to minimize loss.

Selpa began work but was unable to continue to perform under th [...]

 
› Next article: 
 
Sign up now for Construction Claims Monthly Online! Your own virtual help desk of must-have techniques, tutorials, and how-to articles.
 
Join Now Construction Claims Monthly! Close
 
×

Dear Valued Customers,

We regret to announce that ProEdTech LLC and all its affiliate brands will cease operations on April 1, 2019.

We are no longer able to fulfill online orders. We will fullfill all DVD and book orders already placed.

Customers of canceled webinars and subscription products may request a refund at (800) 223-8720 or service@proedtech.com. You must do so by April 1, 2019.

Thank you for your business and loyalty over the years. We sincerely apologize for any inconvenience caused.


Best regards,
The ProEdTech Team