A MA Appeals Court decision pertaining to a public school construction project has helped to clarify the scope of liability of a surety on a payment bond claim involving a subcontractor.

The holding of this case illustrates the importance of making sure that if you are going to be proceeding in arbitration, you must be certain to include all of the players from whom you may be seeking relief and avoid a potential problem.

While a party may challenge whether it has the obligation to participate in an arbitration, if one doesn’t make the demand and assert the right, you could waive it and miss the opportunity to get payments for portions of your damages.

To read the full text of this piece, please click on the PDF.