In a Nov. 5 decision, a federal appeals court rejected a contractor’s argument that it did not have to include payment bonds on two U.S. Army building projects because the federal contract rule was not expressly noted in the solicitation or its contracts.
The U.S. Court of Appeals for the Federal Circuit ruled that K-Con Inc., a Charleston, S.C., design-build contractor that specializes in pre-engineered structures for government, military and commercial clients, was required to post performance and payment bonds for subcontractors and vendors on its Army projects, even though the mandate—under the Miller Act, which covers contracts valued at more than $150,000—was not directly stated.