If anyone has insight into the circumstances under which a subcontractor remains bound to perform after the owner default terminates the general contractor mid-project and the contractor’s surety enters into a takeover agreement with the owner, please reply to me.  I am wondering whether a generic “inures to the benefit of the parties’ successors and assigns” clause is sufficient to bind the subcontractor to enter into an agreement with the completing surety to complete the work or whether a more specific conditional assignment of the subcontract to the contractor’s surety is required.

Thanks,
Reese

Reese J. Henderson, Jr. | Shareholder
Florida Bar Board Certified in Construction Law
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Most standard Owner/Contractor forms have a “conditional assignment” of subcontracts in the event of termination (its section 5.4 of the 2010 A201 General Conditions).  Sub would be bound to perform under flowdown provisions probably.

Watch out for licensing issues if the owner (or surety) becomes the assignee of a bunch of subcontracts and is not itself licensed.

Bruce D. Partington
Clark Partington
bpartington@cphlaw.commailto:bpartington@cphlaw.com
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Fax: 850-432-7340
*Board Certified in Construction Law

From: clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] On Behalf Of Reese J. Henderson, Jr.
Sent: Tuesday, June 09, 2015 9:07 AM
To: clc-discussion@lists.flabarrpptl.org
Subject: [CLC-Discussion] Subcontractor Bound After Contractor Default

If anyone has insight into the circumstances under which a subcontractor remains bound to perform after the owner default terminates the general contractor mid-project and the contractor’s surety enters into a takeover agreement with the owner, please reply to me.  I am wondering whether a generic “inures to the benefit of the parties’ successors and assigns” clause is sufficient to bind the subcontractor to enter into an agreement with the completing surety to complete the work or whether a more specific conditional assignment of the subcontract to the contractor’s surety is required.

Thanks,
Reese

Reese J. Henderson, Jr. | Shareholder
Florida Bar Board Certified in Construction Law
G R A Y | R O B I N S O N

50 North Laura Street, Suite 1100 | Jacksonville, Florida 32202
T: 904-598-9929 | F: 904-598-9109 | D: 904-632-8459
E-mailmailto:Reese.Henderson@gray-robinson.com | Websitehttp://www.gray-robinson.com | Biohttp://www.gray-robinson.com/attorneys/detail/1022/ReeseJ-HendersonJr | vCardhttp://www.gray-robinson.com/docs/Reese%20Henderson.vcf

Facebookhttps://www.facebook.com/GrayRobinsonLaw | LinkedInhttps://www.linkedin.com/company/grayrobinson-p.a. | Twitterhttps://twitter.com/grayrobinsonlaw

This e-mail is intended only for the individual(s) or entity(s) named within the message. This e-mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney-client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney-client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510-2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e-mail and delete the original message without reading same. Nothing in this e-mail message shall, in and of itself, create an attorney-client relationship with the sender.