Paramount sues Sauer, Federal over $1.6m bond row
Paramount Mechanical Corporation sued Sauer Construction and Federal Insurance Company to collect 1.6 million dollars for plumbing work at Fort Myer in Virginia. The Virginia contractor signed a deal worth nearly 9 million dollars to service Building 416 after the general contractor won the Army Corps of Engineers project. Federal Insurance posted a 9.7 million dollar bond to guarantee worker payments.
Paramount claims Sauer kept money after the government paid invoices and failed to meet contract deadlines. The subcontract required payment within 7 days of receiving funds from the owner or, if approved, billing documents arrived, no later than 60 days after they arrived. The lawsuit, filed on Friday, October 17, asks a federal judge to award the outstanding balance, plus interest and court costs, under Miller Act protections for government construction suppliers.
