Legal Issues: Payment Bonds and Mediation Evidence

A state appeals court ruled that a subcontractors labor and material payment bond does not protect a general contractor who seeks payment for the costs it incurs doing its subcontractors job on a building project. The general contractor, who was the payment bonds indirect beneficiary, was seeking payment for its costs in completing the HVAC work at a new high school. The subcontractor responsible for doing the work had apparently not properly staffed the job site and fell behind schedule.

Citation: ASHRAE Journal, vol. 45 no. 9, September 2003



Product Code(s): D-18765