Articles
December 05, 2013

Subcontracting is a Risky Business: Ensuring Payment on Public-Private Partnerships?

Insurance, Surety & Liens, newsletter of Division 7 of the ABA Forum on Construction, December 2013

by Stites & Harbison, PLLC


Construction projects are like onions—and ogers—they have many layers. On a typical construction project an owner will contract with a general contractor who will then contract with subcontractors, who may themselves contract with even lower tier subcontractors. Ultimately, there tend to be many intermediaries between subcontractors doing the work and owners who benefit by the work on construction projects. One problem that results from this for subcontractors is how they ensure payment for their work if the contractor with whom they have contracted refuses to pay?

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