A subcontractor asserting a payment bond claim for “standby” time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety.

In fact, the duration of the standby time occurred after the surety’s principal, the general contractor, had been placed in default and terminated on the general contract. According to the surety: “After termination of the contract… it is impossible for labor, materials, and equipment to have been furnished for use in performing the terminated contract.” The surety filed a motion for summary judgment.