A subcontractor on a West Point hospital project claims that the prime contractor has refused to pay nearly $1.4 million for its work.
MMC Contractors Northeast is invoking the Miller Act against StructSure Projects Inc., in a lawsuit filed Feb. 2 in U.S. District Court, White Plains.
The Miller Act is a federal law that requires prime contractors on government construction projects to post bonds that guarantee payments to subcontractors and material suppliers.
In 2014, the Army Corp of Engineers hired United Excel Corp., now known as StructSure, of Kansas City, Missouri, to renovate the Keller Army Community Hospital at West Point for $39.5 million.
In 2015, StructSure hired MMC Contractors of Summit, New Jersey, to do the mechanical and plumbing work for $8.3 million. The price was later increased to $9.7 million, according to the complaint, to include 21 change orders.
MMC Contractors finished the job on Feb. 4, 2020.
StructSure has paid MMC more than $8.3 million, the complaint states, leaving a balance of $1,367,240.
MMC said StructSure has refused to pay the rest.
StructSure did not respond to an email asking for its side of the story.
MMC Contractors is demanding payment plus 10% interest per annum under the Miller Act and for an alleged breach of contract. It is also demanding payment from Arch Insurance Co. of Kansas City, the company that bonded StructSure.
Newburgh attorney Michael E. Catania represents MMC Contractors.
