If the contractor defaults, the surety usually has three options: Pay the amount set in the bond as a penalty (or can settle that amount with the owner). Complete the project themselves or by hiring a new contractor. Provide money to the principle to complete the project.
Yes you can sue the subcontractor directly. You don't need a contract with someone to sue them for negligence. You can probably also sue them as a third party beneficiary of their contract with the general contractor.
A general rule of contributory negligence is that a main contractor is not liable for the negligence of its independent subcontractor. There are some exceptions to this rule, including: The main contractor had actual knowledge that the sub-contractor's work had been done in a foreseeably dangerous way and condoned it.
What rights does a surety have in the event of a contractor default? The surety can recover the debt from the defaulting contractor, the surety can sue the owner for claims that could be easily made by the contractor, or the surety could try to get the retainage held by the owner.
Usually, anything that subcontractors would be liable for, general contractors may also be liable for (with the caveat that if the contractor has to pay for damages, the subcontractor who is legally responsible will often reimburse the general contractor).
Bonding Company. The first step in filing your surety bond claim is to find out who bonded the offender. Make Contact. Maintain Contact.
What are subcontractors? Subcontractors undertake a contract from the contractor. Subcontractors undertake work that a contractor cannot do but for which the contractor is responsible.
A contractor who has been paid for a project and refuses to pay a subcontractor shall as a penalty, pay 2 percent of the amount due per month every month that the payment is not made. In addition, the prevailing party shall be entitled to his attorney's fees and costs.
Call to have a Complaint Form mailed to you 1-800-321-CSLB (2752), OR. Use the On-line Complaint Form, OR. Download and Print a Complaint Form.