Category Archives: Prompt Pay

June 26, 2008

Subcontractor not required to perform its paving work at midnight using teaspoons

By Tim Gordon

New Design Construction Company, Inc. v. Hamon Contractors, Inc. (Colo. App. 2008)

The Court of Appeals holds that the duty of good faith and fair dealing applies to a prime contractor’s right to schedule and sequence the work.  Additionally, the Court holds that a subcontractor not suing CDOT directly is not required to exhaust the CDOT administrative remedies prior to maintaining a suit against the prime contractor.  Finally, the Court addresses when penalty interest under Colorado’s prompt pay act applies and begins accruing.

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