Subcontractor focus – Miller Act time limits may affect payment contingency
$225.00
Description
Abstract: In the hope of shifting away some of the risk of a government’s refusal to pay general contractors on public projects often insert so-called “pay when paid” clauses in their subcontracts. Recent federal court decisions based on the Miller Act, however, limit a payment bond surety’s ability to use “pay when paid” clauses. This article examines one example of these limitations in a recent West Virginia case, and a sidebar looks at a similar decision.
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