United States of America for the Use and Benefit of T.M.S. Mechanical Contractors, Inc., Cross-Appellee v. Millers Mutual Fire Insurance Company of Texas, Third-Party Cross-Appellant v. The Craftsmen, Inc., Third-Party and Joseph Breedlove, J.D. Richmond, Jr. And Doris D. Richmond, Third-Party

T.M.S. Mechanical Contractors, a subcontractor on a VA hospital project, sued the Miller Act surety for Millers Mutual Fire Insurance after the general contractor delayed and then terminated the work. The court ruled that subcontractors can recover actual out-of-pocket costs for labor and materials caused by delay, but cannot recover termination costs or lost profits. This case clarifies what damages are recoverable under Miller Act bonds when projects are delayed or terminated.