[CLC-Discussion] Public Construction Bond Claimants - how far down is too remote?

[Tina L. Caraballo]

Large subcontractor pushed the sub-sub that actually performed the work down
a level by inserting another company in-between.  The middle company's
contract is only $10,000 more than the company that actually performed the
work and really did not take part in the construction at all.  The quotes
and negotiations for the project were provided to and handled by the
subcontractor and it was only at the time of  actually entering into the
contract that the existence of the middle company came up.  The large sub
handles everything on the project as if it directly contracted with the now
sub-sub-sub.  During the course of construction it is as if the sub-sub does
not even exist.  

 

There is no issue with meeting minority participation goals.  It appears as
a deliberate attempt to make the company actually performing the work too
remote to claim under the 255.05 bond (subcontractor was not required to
provide a bond).  Has anyone encountered this lately?  Did the court/bonding
company look at form over substance?  Other thoughts?  Please feel free to
respond to me only at tcaraballo at caraballolawfirm.com.  Thanks.  

 



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