
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 40USC270b]

 
             TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
 
             CHAPTER 3--PUBLIC BUILDINGS AND WORKS GENERALLY
 
Sec. 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.
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    \1\ So in original. The period probably should not appear.
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(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, Sec. 2, 49 Stat. 794; Pub. L. 86-135, Sec. 1, 
Aug. 4, 1959, 73 Stat. 279; Pub. L. 106-49, Sec. 2(b), (c), Aug. 17, 
1999, 113 Stat. 231.)


                               Amendments

    1999--Subsec. (a). Pub. L. 106-49, Sec. 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 envelop 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, Sec. 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.''


                    Federal Rules of Civil Procedure

    Parties, see rule 17, Title 28, Appendix, Judiciary and Judicial 
Procedure.

                  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.
