A subcontractor sued a general contractor and the payment bond surety for unpaid work on a water treatment plant project. The general contractor defaulted and the city took over construction. The court ruled that the payment bond surety must pay the subcontractor for all labor and materials provided, including costs for idle equipment, standby labor, and equipment rental during project delays. This means sureties cannot avoid payment by claiming equipment or labor wasn't actively used.
Payment bond sureties are liable for all labor and materials costs, even if equipment sits idle or workers are on standby during delays—you get paid for what you provided, not just what was actively used.
Document all labor, materials, and equipment rental costs carefully, including periods when work was delayed or equipment wasn't in active use, because these are recoverable under payment bonds.
If a general contractor defaults on a public works project, pursue the payment bond surety aggressively—courts will enforce payment obligations for the full value of work and materials furnished.