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Surety's Claim for Contract Payments

B-192516 Nov 08, 1978
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Highlights

A decision was requested as to whether a surety's claims should be paid. The surety had notified the agency of unpaid claims against the contractor and asserted its prior rights to contract retainages but, through clerical error, the agency mailed final payments to the contractor. The surety may be paid upon submission of evidence that all outstanding claims have been paid and assignment to the Government of its rights to recoup erroneous payments to the contractor.

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