Western Waterproofing Co., Inc. v. Springfield Housing Authority
United States District Court for the Central District of Illinois
669 F.Supp. 901 (1987)
Subcontractors Western and Mid-Continental (plaintiffs) performed work on a Springfield Housing Authority (defendant) project under a contract with general contractor Bildoc that promised payment 63 days after completion; after full performance, SHA paid Bildoc, but Bildoc never paid the subcontractors, and default judgments against Bildoc proved uncollectible. The general contract's provision, titled Performance and Payment Bond, referred only to a performance bond in its text, and the subcontractors sued SHA directly as third-party beneficiaries of that provision; both sides moved for summary judgment.
Whether subcontractors working on a government construction project are third-party beneficiaries of the contract between the government entity and the general contractor.