may include the same requirements in their contracts with lower tier subcontractors
, Both direct contractors and subcontractors
may withhold as "disputed" all sums owed to a lower tier subcontractor
until the specified information is provided, as long as that information was specifically required by that subcontractor
In the lawsuit, filed May 17 in Hennepin County District Court, the steel framing and drywall contractor said it worked as a subcontractor
for Tarraf Construction on projects for Anoka County, Hennepin County and the Minnetonka Public Schools.
As the above amply illustrates, the determination of whether a party is a subcontractor
or materials supplier for purposes of a claim on a Miller Act payment bond is a complicated and fact-intensive one.
Per the latter license, a subcontractor
is legal if it uses its own method and equipment while performing the project inside or outside the premises of the principal or client.
After the Subcontractor
mobilized onto the site and commenced its scope of work, it issued its first interim payment application to the Main Contractor who did not settle this payment because it had not received the equivalent payment from the Employer.
As a national commercial contractor, I can tell you the labor shortage is real and widespread; however, its impact on executing a construction project definitely varies depending on the market's level of construction activity and depth of the local subcontractor
"We will continue to support our subcontractors
, so they are globally competitive."
* Indemnification is the contractual obligation of the subcontractor
to return the upper tier contractor (GC/Owner/Property Manager) to the same financial condition that existed prior to the loss and/or to represent the GC as the sole source for financing the legal liability.
In reply, Lockheed maintained that it had flowed down all necessary requirements to its subcontractors
, and had collected all appropriate (nonproprietary) information from them.
This established position is understood and not unreasonable: the contractor selects its subcontractors
and negotiates its subcontracts, it is in a better position than the employer to take the risk for the ubcontractors' behaviour.
CPA firms also should review subcontractors
' privacy and security policies.