ACC, a subcontractor on a federal construction project in Washington D.C., sued its contractor Hirani and the surety Colonial for unpaid work totaling $2.17 million. The court ruled in ACC's favor on both the Miller Act claim against the surety and the breach of contract claim against the contractor. Colonial's counterclaims for project completion costs were rejected. This case shows that subcontractors can successfully recover from sureties when contractors fail to pay, even on federal projects.
Document all work performed and costs incurred meticulously—ACC's evidence was strong enough to win a five-day bench trial and recover full damages
Miller Act claims against sureties are viable when contractors don't pay; you don't have to rely solely on the contractor for payment
Keep detailed records of change orders, termination issues, and contract disputes—these were key evidence in proving ACC's case