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While this may not prevent the subcontractor from breaching those terms, it will provide some ammunition, should the dispute end up in litigation or arbitration.
The federal trial court did award the subcontractor prejudgment interest at the 10 percent rate against the payment surety, but declined to award the other amounts.
Second, the acceptance of the property by the customer may be irrelevant, because the subcontractor typically works only for the contractor.
This is when the subcontractor agrees to shield the GC and take on the legal liability that would have been placed on the GC.
DCAA insisted that it could find no subcontract costs allowable "[w]ithout an incurred cost submission from the subcontractor," which it contended was the prime contractor's responsibility to obtain.
Where the subcontractor's performance is poor, it can appear unjust to the contractor that he is required to take responsibility for the subcontractor, and indeed suffer the impact of that poor performance across the project, where he has had little or no control.
If the subcontractor's claim experience target was forecast at the program's outset to be 10 claims but its actual claim experience turned out to be only six, the subcontractor would be paid 40% of the total available bonus.
Typically, unauthorized disclosure of confidential client data by a subcontractor relates to the activities of its employees rather than a rogue act by an unknown third-party hacker.
Some options which a subcontractor can use when faced with a pay when paid scenario are set out below.
Defending a claim for an employee over which the contractor has little or no control can be difficult, as it requires assurances from the subcontractor.
According to North Carolina General Statute [section] 44A-18, a subcontractor that furnishes labor, common materials or rental equipment on a construction project can assert a lien on the monies owed on that project.
Subcontractor failure is another reality of the construction industry and can't be avoided entirely.
Under Virginia law: "Funds paid to a general contractor or subcontractor must be used to pay persons performing labor or furnishing material.
In the construction management literature, there have been only a few specific academic studies on the practice of the subcontractor selection, except for some modeling studies (Albino and Garavelli 1998; Okoroh and Torrance 1999; Kumaraswamy and Mathews 2000; Tserng and Lin 2002; Ip et al.
One case involved a subcontractor working on a building on the side of a slope.
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