The federal Miller Act has been around since the mid-1930s. You would think that, by now, all questions about its application would have been resolved by the courts. Unfortunately, hundreds of lawsuits remain that involve interpretations of the Miller Act.
On a $28 million infrastructure contract, a contractor suffered an $11 million loss because of high charges by the utility companies for their part of the installation. The contractor, it turned out, got no remedy in court and, therefore, no means of recouping this major loss.
As security systems become more sophisticated and complex, proper maintenance has become increasingly critical. Gone are the days when electrical contractors could just install a system and then walk away.
Sparky Electric is an experienced contractor. Most of its business has been in light commercial construction, such as midsize office buildings, an occasional strip mall and a few schools. Now a large project is in the works, and the owner is looking for design/build electrical contractors.
An electrical contractor, let’s call him Sparky Inc., was running into financial difficulty. My client, call him Cathode Inc., entered into negotiations to buy Sparky and, in the meantime, agreed to finish one of Sparky’s jobs on a university building as an electrical subcontractor.