B-182911: Feb 5, 1975

PROVIDED MONEY IS USED TO PAY BILLS UNDER CONTRACTS ON WHICH IT IS SURETY. GOVERNMENT SHOULD NOT DISBURSE FUNDS TO CONTRACTOR SINCE GOVERNMENT IS ON NOTICE OF CLAIMS BY SUBCONTRACTOR FOR WHICH SURETY IS POTENTIALLY LIABLE SHOULD CONTRACTOR NOT PAY SUBCONTRACTOR. IT IS SUGGESTED THAT FUNDS BE RETAINED PENDING JUDICIAL DETERMINATION OF RIGHTS OF PARTIES. CX-1200-4-9017 WAS AWARDED TO REEVES ELECTRIC...

B-182911: Feb 5, 1975

An officer questioned the propriety of making final payment to a contractor who refused to pay money owed to a subcontractor until the Government pays it the amount retained under the contract. In spite of the surety's statement that it has no objection to release of the money, the funds should be retained pending agreement between parties or judicial determination of rights of parties since the G...