Subcontractor demands payment for Army construction project

A subcontractor on an Army construction project has filed suit in Kentucky federal court, alleging that the prime contractor and its surety owe money for work performed at a military training facility.

The complaint filed in the U.S. District Court for the Western District of Kentucky says ACC Construction Co. and Liberty Mutual Insurance Co. owe Hoosier Prestress Inc. $19,300 under the Miller Act, 40 U.S.C. § 3131.

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The case involves a contract to build a training facility at Fort Knox Army Base in Kentucky.

The statute requires prime contractors on federal jobs to provide payment bonds so the project’s labor and materials suppliers can be paid in the event of default.

According to the suit, ACC Construction was the prime contractor on a project to build a training facility at Fort Knox Army Base in Kentucky.

(Click here for the complaint on Westlaw.)

Liberty Mutual Insurance Co. issued surety bonds on behalf of ACC to ensure payment of subcontractors.  The bonds bound Liberty Mutual and ACC to pay subcontractors for labor, services and materials, the suit says.

ACC Construction worked directly with the U.S. Army Corps of Engineers and contracted out work to Hoosier Prestress, according to the suit.

The complaint says ACC owes Hoosier $19,300 for labor, services and materials, and that despite the company’s requests, ACC has not paid.  Liberty Mutual is also responsible for the amount owed because of the bonds, it adds.

The plaintiff claims ACC breached the subcontract by refusing to pay the amount owed and violated the Federal Prompt Payment Law, 31 U.S.C. § 3902.

The company is seeking the amount owed plus interest from Liberty Mutual or ACC, as well as attorney fees.

Hoosier Prestress Inc. v. ACC Construction Co. et al., No. 13-CV-809, complaint filed (W.D. Ky. Aug. 19, 2013).