Tag Archives: bond principal

Ensure that the Face of the Performance Bond Expressly Covers Delay Damages

If you are an obligee under a performance bond (meaning the performance bond is designed to benefit you) then you ideally want the bond to cover delay damages. In other words, you want the performance bond to cover delay damages … Continue reading

Posted in Performance bond | Tagged , , , | Comments Off on Ensure that the Face of the Performance Bond Expressly Covers Delay Damages

Miller Act Payment Bond Surety Cannot Raise Pay-If-Paid / Pay-When-Paid Defense

Most prime contractors include pay-if-paid (or pay-when-paid) language in their subcontract as a means to shift the risk of the owner’s nonpayment to the subcontractor. However, on federal construction projects, the prime contractor furnishes the government with a Miller Act … Continue reading

Posted in Miller Act, pay-when-paid | Tagged , , , , , , | Comments Off on Miller Act Payment Bond Surety Cannot Raise Pay-If-Paid / Pay-When-Paid Defense

Claimant under Miller Act Payment Bond can Sue Prime Contractor (Bond-Principal) Directly

A Miller Act payment bond lawsuit does not need to be brought against the payment bond surety. The lawsuit can be brought only against the prime contractor. This is because the prime contractor is the principal of the payment bond … Continue reading

Posted in Miller Act, Payment Bond | Tagged , , , | Comments Off on Claimant under Miller Act Payment Bond can Sue Prime Contractor (Bond-Principal) Directly