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A state appeals court ruled that a subcontractor's labor and material payment bond does not protect a general contractor who seeks payment for the costs it incurs doing its subcontractor's job on a building project. The general contractor, who was the payment bond's indirect beneficiary, was seeking payment for its costs in completing the HVAC work at a new high school. The subcontractor responsible for doing the work had apparently not properly staffed the job site and fell behind schedule.

Citation: ASHRAE Journal, vol. 45 no. 9, September 2003