Construction Contract: Question on Bond Certificate: First Pipeline Client request bond Certificate prior to start of project. Bond was going to take a few weeks, Pipeline Client allows contractor to start work due to schedule already set without bond certificate. Weeks go by and Bond agency state will only bond remaining of project which some monies were already paid to contractor, Pipeline Client wants the whole amount bonded but bond agency said they would only bond remaining of contract. Ok, i'm keeping short, All work got done without bond certificate and Pipeline Company after all mechanical welding complete says, Contractor is in breach of contract due to not providing bond certificate and has denied payment for all the extra work performed in the amounts of about 4,3 million dollars. My question? Is this legal? Pipeline running and making money. Broken promising that they'll pay throughout project. Please advice. Thank you
1 Answer from Attorneys
If there are no issues with what would have been claims under the bond and the cost of the bond has been backed out, there is no reason payment should be denied based on what you say. But a lawyer needs to review this and look at all of the facts to be sure.