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In state of MS is there a MS code that liability for surety stops at the first supplier?

Mississippi

We are a supplier to a sub. We received a letter from CNA Surety . The statement below is a paragraph in the letter. " Additionally, as this a supplier payment issue involving a supplier to supplier of sub, under MS Code, liability for the surety stops at the first supplier." Is this a true statement? As a supplier are we unable to file against the bond?

1 reply

Mar 26, 2021

Your statement and the statement from the surety's letter are different. While you state that you are "a supplier to a sub" the surety claims that you are a "supplier to a supplier" to a sub. This distinction can make a big difference. In many circumstances, suppliers to suppliers are not afforded the same benfits to secure payment that other parties on the project are.

In Mississippi, a supplier to a subcontractor is protected by the project's payment bond. However, a supplier to a supplier is not.

Specifically, Mississippi § 31-5-51 states, in part:
"(4) The only persons protected by such payment bond, subject to the notice provisions of this section are:

(a) Subcontractors and material suppliers of the contractor;

(b) Sub-subcontractors and material suppliers of those subcontractors named in subsection (4)(a) of this section; and

(c) Laborers who have performed work on the project site."

So, the material suppliers specifically protected are those who supply materials to the contractor or a subcontractor.

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