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What's New: Claims Success Stories

Surety Warehouse Success

Wednesday, May 16, 2018  
The principal was terminated from a $6.1 million federal project for the construction of 2 warehouses and 2 support buildings. The project owner alleged defective work and 4 months of project delays. The principal disputed termination and appealed. Nevertheless, the surety proceeded with a takeover under a complete reservation of the rights and completed the project, including all corrective work. In doing so, the surety spent $4 million in excess of the contract balance. The project owner held approximately $350,000 in claimed liquidated damages and back charges. At the time of termination, the principal owed its subcontractors and suppliers $700,000 for work on the project, but it was asserting a pay-when-paid defense unavailable to it after termination. The surety settled and satisfied all verified payables, ratifying subcontract and supply agreements where possible.

1140 19th Street, NW, Suite 500 • Washington, DC 20036-6617
Phone: 202-463-0600 • Fax: 202-463-0606