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B-198001 1 (1980-03-28)

handle is hein.gao/gaobadicx0001 and id is 1 raw text is: P~ wTHE COMPTROLLER GENERAL DECISION OF THE UNITED STATEB WASHINGTON, D.C. 20548 FILE: B-198001 DATE: March 28, 1980 MATTER OF: Cianbro Corporation N-6- 0 el. DIGEST: (,16-UY? o,,3 GAO will not review claim under dredging contract where prime contractor refuses to pay subcontractor for work performed under contract since, with exception of remedy provided by Miller Act, settle- ment of obligations between contractors and those furnishing labor and materials ordinarily is matter outside GAO jurisdic- tion, there being no privity between such person and United States. By telegram of February 29, 1980, and letter of March 5 980, with enclosure, Cianbro Corporation (Cianbro) t an independent review by our Office of contract . 42-DOTSCG0l-9242 for the United States Coast Guard Dredging Project, Portland, Maine. Hydro-Dredge Corporation (Hydro-Dredge), which was the prime contractor for the above contract, entered into a subcontracting arrangment with Cianbro for the removal by Cianbro of dredgings to an approved waste disposal area. Cianbro states that prior to the removal of the dredging to the approved waste disposal area it (Cianbro) placed the dredgings on an adjoining lot to dry out, after which the dredgings were removed to the waste dis- posal area. Cianbro states that it removed the dredg- ings in conformance with the terms of the contract, but that Hydro-Dredge refuses to pay it for the re- moval. According to Cianbro, Hydro-Dredge claimed that Cianbro did not remove the dredgings in accordance with the terms of the contract, but that the owner of the adjoining lot used the dredgings to fill its lot. Also, according to Cianbro, Hydro-Dredge's surety, Peerless Insurance Company, has refused to pay Cianbro's

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