We are a commercial electrical contractor and were hired by a general contractor to perform the work on a project located on a military base. So the project is government funded. Well the GC has informed us that the electrical scope of work was pulled from the contract and so basically we were not going to be doing the work after all. We had ordered some light fixtures and had them stored at our vendor's warehouse location for that job. They are still in there today. When I asked for payment for the invoices that covered those stored materials the GC informed me that they were not going to be sending payment. My vendor who we use on the daily is asking for payment but we have not been paid and looks like we won't be. The materials are non refundable and not returnable either. What are my options to receive payment?
You should retain a construction attorney to evaluate your legal situation and to provide advice.
It appears that your claim may be covered by the Miller Act (which governs payment bonds for federally owned project). The legal analysis would start with a review of your contract, and then extend to any communications which have occurred, and especially to any notice by the general contractor (termed the prime contractor under the Miller Act) to proceed.
If your subcontract was terminated for convenience, then any termination for convenience provisions in your subcontract would apply.
So, read your subcontract.
Good luck.