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Old 04-07-2005, 08:17 PM
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Default Claim for Delay

Can a claim be made against a bond for costs associated with delay? For example - in a case where the General Contractor requires their major subcontractors to carry a bond - if a sub performs in such a manner that their performance creates major costs which the GC must cover in order to complete the project, say winter protection, winter heat Owner backcharges for extra consultant fees etc., and the project is completed successfully yet substantially late, can the GC make a claim against the bond of the responsible sub to recover their costs?
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Old 04-09-2005, 07:55 PM
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The subcontractor's bond would conform to the governing subcontract. Does it specify damage delay clause? Is there any subjectivity of opinion as to whether or not the subcontractor's actions, of lack of, caused the delay? Although I'm not a licensed attorney, imho, there might be some basis for a valid claim....depending on your response.
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Old 04-10-2005, 11:06 PM
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The GC's contract with the Owner included a "No Claims for Delay Clause" but I dont know if it was required to be carried through to subcontractors. There is not doubt about the cause for delay. The proect was completed but several (6) mos. late. The sub and its major supplier will not accept a backcharge.
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Old 04-11-2005, 11:09 AM
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ContractorsBondBroker is correct. When it comes down to it, the language in the sub-contract is what is going to govern the GC's ability to place a claim. If the liquidated damages clause was pulled from the contract, I definitely think they (the GC) will have more difficulty validating that claim.

Just my 2 cents
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