DIGEST: MILLER ACT PERFORMANCE AND PAYMENTS BONDS SURETY MAY BE REIMBURSED FROM RETAINAGES UNDER A DEFAULTED CONTRACT ONCE THE SURETY SUBMITS REASONABLE EVIDENCE THAT ALL OUTSTANDING CLAIMS OF LABORERS AND MATERIALMEN HAVE BEEN PAID. 023.71 IN RETAINAGES WHICH IS BEING HELD UNDER DEFAULTED CONTRACT NO. IS THE SURETY UNDER THE MILLER ACT (40 U.S.C. 270A-270F (1976)) PERFORMANCE AND PAYMENT BONDS PR...

The Defense Mapping Agency (DMA) requested an advance decision concerning the proper disposition of retainages which were being held under a defaulted contract pending resolution of conflicting demands for payment between the contractor and its surety. Following contract termination, the surety did not elect to complete performance under the defaulted contract and DMA arranged for the completion o...