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Contractor Not Obligated To Prosecute Sub's Claim Claims Administration; Subcontractors

Thursday, June 09, 2005 03:00 pm


A federal district court has ruled that a claims settlement agreement did not obligate a prime contractor to sue the project owner on behalf of a subcontractor.

The Department of Veterans Affairs awarded a contract to Centex Construction Co., Inc. for improvements to a medical center in Dallas, Texas. Centex subcontracted a portion of the work to Cleveland Construction, Inc.

Cleveland later sued Centex for alleged delays and changes in the scope of the subcontract. Some of the claims involved the actions of the VA, some did not. Centex and Cleveland negotiated a settlement of the subcontractor's direct claims against Centex, while the prime contractor cont [...]

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