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Miller Act Bond

Florida

I feel like I should know the answer to this question and I researched the manual, but still want to make sure we have rights according to the bond. We have a contract with the GC who has a contract with the US Coast Guard. It is a paid if paid contract (which is a little bit strange). I can still send a NNP within 90 days to the GC and the bonding company correct? I have copied here some verbiage in the contract regarding payments: “2.1 Subcontractor’s full compensation for the satisfactory performance of its subcontract shall be the Contract Price of $44,350.00 , payable only as set forth in this Subcontract. This amount includes all taxes, assessments, and contributions of every kind and description. Contractor’s obligation to pay all or any portion of the above amount to Subcontractor, whether as a progress payment, retainage, or final payment is expressly made subject to the condition precedent that Contractor shall have first received from Owner payment of all amounts due Contractor for the work for which Subcontractor seeks payment. Subcontractor expressly agrees to this condition precedent, and also agrees that it will apply to any obligation of Contractor’s surety, if any. This is a paid-if-paid-subcontract.” I thought it was illegal to waive any rights under a bond, which is kind of what is implied here it sounds like. Any help you can give is appreciated!

1 reply

Mar 8, 2021

Yes. While the contract is pay if pay, the Bond is more than likely not. You need to get a copy of the bond from the contracting officer. Please call me. I am dealing with a similar issue with another client.

Michael (561) 715-3781

Michael J. Friedman

Board Certified by the Florida Bar in Construction Law
Vezina, Lawrence & Piscitelli

www.vlplaw.com

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