{"id":901534,"date":"2023-08-21T15:19:16","date_gmt":"2023-08-21T21:19:16","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901534"},"modified":"2023-08-21T15:19:18","modified_gmt":"2023-08-21T21:19:18","slug":"payment-bond-claim-just-hanging-around","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/","title":{"rendered":"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d"},"content":{"rendered":"\n

Daniel Lund III | Phelps Dunbar<\/a><\/p>\n\n\n\n

A subcontractor asserting a payment bond claim<\/a> for \u201cstandby\u201d time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety.<\/p>\n\n\n\n

In fact, the duration of the standby time occurred after the surety\u2019s principal, the general contractor, had been placed in default and terminated on the general contract. According to the surety: \u201cAfter termination of the contract\u2026 it is impossible for labor, materials, and equipment to have been furnished for use in performing the terminated contract.\u201d The surety filed a motion for summary judgment. <\/p>\n\n\n\n

The federal district court in Indiana disagreed with the surety\u2019s position: \u201cThis oversimplifies the matter. A party can furnish an item for another party’s particular use even where it is impossible for the item to be actually used in that particular manner. For example, a person can furnish a bag of cat food to another person for use in feeding the recipient’s cat. If, unbeknownst to the furnisher, the cat has sadly died prior to the food being furnished, then the food cannot be actually used for the intended purpose. The fact that the food was furnished for that purpose, however, remains unchanged. Here, the language of the bond does not require that the items provided be \u2018furnished and used\u2019 in performing the contract, only \u2018furnished for use.\u2019\u201d <\/em><\/p>\n\n\n\n

In denying the summary judgment motion, the court leaned also on initial findings that the subcontractor “kept its workers and equipment available \u2018in good faith\u2019,\u201d actually received a request from the terminated GC to keep equipment and labor available, and otherwise was not timely made aware (in accordance with its subcontract) of the termination of the general contract. \u201c[Subcontractor] had no duty to verify that the [general contract was still in effect before taking on the standby costs. \u2026 The impossibility of [the general contractor] actually using what was furnished for the intended purpose is not determinative.\u201d<\/em><\/p>\n\n\n\n

McLean Contracting Co. v. Great Am. Ins. Co., 2023 U.S. Dist. LEXIS 90699 (N.D. Ind. May 24, 2023)<\/em><\/a><\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Lund III | Phelps Dunbar A subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety. In fact, the duration of the standby time occurred after the surety\u2019s principal,… Continue reading Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,10753],"class_list":["post-901534","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-payment-bond-claim","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-21T21:19:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-21T21:19:18+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d\",\"datePublished\":\"2023-08-21T21:19:16+00:00\",\"dateModified\":\"2023-08-21T21:19:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\"},\"wordCount\":392,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"Payment Bond Claim\"],\"articleSection\":[\"Construction\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\",\"name\":\"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2023-08-21T21:19:16+00:00\",\"dateModified\":\"2023-08-21T21:19:18+00:00\",\"description\":\"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.","description":"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/","og_locale":"en_US","og_type":"article","og_title":"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.","og_description":"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2023-08-21T21:19:16+00:00","article_modified_time":"2023-08-21T21:19:18+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d","datePublished":"2023-08-21T21:19:16+00:00","dateModified":"2023-08-21T21:19:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/"},"wordCount":392,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","Payment Bond Claim"],"articleSection":["Construction"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/","name":"Construction Litigation\u00a0Roundup: \u201cJust Hanging Around\u201d - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2023-08-21T21:19:16+00:00","dateModified":"2023-08-21T21:19:18+00:00","description":"subcontractor asserting a payment bond claim for \u201cstandby\u201d time for its equipment received pushback from the payment bond surety","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/payment-bond-claim-just-hanging-around\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3MwS","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=901534"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901534\/revisions"}],"predecessor-version":[{"id":901535,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901534\/revisions\/901535"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=901534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=901534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=901534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}