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<p class="MsoNormal"><span style="color:#1F497D">Most standard Owner/Contractor forms have a “conditional assignment†of subcontracts in the event of termination (its section 5.4 of the 2010 A201 General Conditions). Sub would be bound to perform under flowdown
provisions probably.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Watch out for licensing issues if the owner (or surety) becomes the assignee of a bunch of subcontracts and is not itself licensed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:13.5pt;color:#0000A0">Bruce D. Partington</span></b><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:#1F497D">Clark</span><span style="color:#1F497D">
</span><span style="font-size:10.0pt;color:#1F497D">Partington</span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="mailto:bpartington@cphlaw.com" title="blocked::mailto:bpartington@cphlaw.com"><span style="font-size:10.0pt">bpartington@cphlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:#1F497D">Direct: 850-432-1399</span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:#1F497D">Fax: 850-432-7340</span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:9.0pt;color:#1F497D">*Board Certified in Construction Law</span></i><span style="color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org]
<b>On Behalf Of </b>Reese J. Henderson, Jr.<br>
<b>Sent:</b> Tuesday, June 09, 2015 9:07 AM<br>
<b>To:</b> clc-discussion@lists.flabarrpptl.org<br>
<b>Subject:</b> [CLC-Discussion] Subcontractor Bound After Contractor Default<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal">Reese<o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:10.0pt;font-family:"Georgia","serif";color:black"><br>
<b>Reese J. Henderson, Jr. | Shareholder</b><br>
<b>Florida Bar Board Certified in Construction Law</b><br>
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