[CLC-Discussion] Subcontractor Bound After Contractor Default

[Reese J. Henderson, Jr.]

If anyone has insight into the circumstances under which a subcontractor remains bound to perform after the owner default terminates the general contractor mid-project and the contractor’s surety enters into a takeover agreement with the owner, please reply to me.  I am wondering whether a generic “inures to the benefit of the parties’ successors and assigns” clause is sufficient to bind the subcontractor to enter into an agreement with the completing surety to complete the work or whether a more specific conditional assignment of the subcontract to the contractor’s surety is required.

Thanks,
Reese

Reese J. Henderson, Jr. | Shareholder
Florida Bar Board Certified in Construction Law
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