No doubt, the economic downturn has affected the construction industry in many ways. One problem is that some overstretched contractors are not paying their subs from the money they receive from building owners. Not surprisingly, subcontractors have been busy filing liens, and usually recovering on them. What can owners do who are forced to pay twice (to the… Continue Reading
Under RCW 39.08.010, owners in public works jobs must require the contractor to purchase and maintain "a good and sufficient bond" from a surety to guarantee payment of labor, materials and services on the project. If the owner fails to comply with this obligation, it is liable "to the full extent and for the full amount of all such debts… Continue Reading
Is a contractor’s registration bond liable for the premiums the contractor is supposed to pay to maintain its workers compensation insurance? The Alaska Supreme Court said no in a case that contains an interesting overview of of what’s covered and not covered by such bonds.
What happens if the size of a surety bond is increased at some point in time, but the increase occurs after the breach which is insured by the bond? Does the increased bond apply to the preexisting breach or not? Apparently not, according to a new Division 2 case. The contractor originally maintained a $6,000… Continue Reading
Our tour of scheduled Supreme Court cases now stops at this case, which involves some fairly dense issues of surety law – specifically, whether a surety’s obligation to a contractor on a subcontractor’s performance bond was conditioned on the contractor declaring a default before the subcontractor substantially completed the work. The Court of Appeals said… Continue Reading