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Contractor Denied Cost Of Defending Payment Claim Attorney Fees; Bonds-payment

Tuesday, August 09, 2005 03:00 pm


The General Services Administration Board of Contract Appeals has ruled that a contractor could not recover attorney fees incurred in defending a subcontractor's Miller Act payment bond action, even if the suit was caused by the government's breach of contract.

The GSA awarded a contract to Gildersleeve Electric, Inc. to reconfigure a parking lot and replace exterior lights at a facility in Richmond, California. Gildersleeve subcontracted concrete and landscaping work to Paragon Construction.

When work was approximately 90 percent complete, the GSA terminated the contract for convenience due to a financial shortfall. Gilde [...]

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