2001 US Code
Title 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS
CHAPTER 3 - PUBLIC BUILDINGS AND WORKS GENERALLY
Sec. 270b - Rights of persons furnishing labor or material

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§270b. Rights of persons furnishing labor or material (a) Right to sue on payment bond

Every person who has furnished labor or material in the prosecution of the work provided for in such contract, in respect of which a payment bond is furnished under sections 270a to 270d–1 of this title and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action to final execution and judgment for the sum or sums justly due him: Provided, however, That any person having direct contractual relationship with a subcontractor but no contractual relationship express or implied with the contractor furnishing said payment bond shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be served by any means which provides written, third-party verification of delivery.1 to the contractor at any place he maintains an office or conducts his business, or his residence, or in any manner in which the United States marshal of the district in which the public improvement is situated is authorized by law to serve summons.

(b) Civil action; jurisdiction; statute of limitations; costs and expenses

Every suit instituted under this section shall be brought in the name of the United States for the use of the person suing, in the United States District Court for any district in which the contract was to be performed and executed and not elsewhere, irrespective of the amount in controversy in such suit, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by him. The United States shall not be liable for the payment of any costs or expenses of any such suit.

(c) Nonwaiver of rights

Any waiver of the right to sue on the payment bond required by sections 270a to 270d–1 of this title shall be void unless it is in writing, signed by the person whose right is waived, and executed after such person has first furnished labor or material for use in the performance of the contract.

(Aug. 24, 1935, ch. 642, §2, 49 Stat. 794; Pub. L. 86–135, §1, Aug. 4, 1959, 73 Stat. 279; Pub. L. 106–49, §2(b), (c), Aug. 17, 1999, 113 Stat. 231.)

Amendments

1999—Subsec. (a). Pub. L. 106–49, §2(b), which directed the substitution of “any means which provides written, third-party verification of delivery.” for “mailing the same by registered mail, postage prepaid, in an envelope addressed”, was executed by making the substitution for “mailing the same by registered mail, postage prepaid, in an envelop addressed”, to reflect the probable intent of Congress.

Subsec. (c). Pub. L. 106–49, §2(c), added subsec. (c).

1959—Subsec. (b). Pub. L. 86–135 substituted “day on which the last of the labor was performed or material was supplied by him” for “date of final settlement of such contract”.

Effective Date

Section effective upon expiration of sixty days after Aug. 24, 1935, but not applicable to any contract awarded pursuant to any invitation for bids issued on or before the date it takes effect, or to any persons or bonds in respect of any such contract, see section 7 of act Aug. 24, 1935, set out as a note under section 270a of this title.

Retroactive Effect

Section 3 of Pub. L. 86–135 provided that: “The rights of laborers and material men under contracts entered into before the effective date [Aug. 4, 1959] of this amendment [amending this section and section 270c of this title] shall not be affected.”

Section Referred to in Other Sections

This section is referred to in sections 270d, 270d–1, 270e, 270f of this title; title 10 section 2701; title 15 section 636; title 25 sections 47a, 1656; title 31 sections 3905, 9303; title 39 section 410; title 42 sections 9619, 11707.

1 So in original. The period probably should not appear.