The Cobb County School District School District contracted with Manhattan Construction Company General Contractor to build a high school. The General Contractor hired McArthur Electric, Inc. McArthur to perform the electrical work on the project. Subsequently, however, the General Contractor declared that McArthur was in default and terminated its services. The dispute resulted in a pending federal lawsuit, wherein McArthur asserts a contract claim against the General Contractor and claims against the sureties on the General Contractor’s payment bonds. In addition to the federal action, McArthur filed a complaint in Cobb County, seeking the imposition of an equitable lien on unpaid funds that the School District allegedly owed to the General Contractor for the project. The parties filed cross-motions for summary judgment. The trial court granted summary judgment in favor of the School District, concluding that McArthur could not assert an equitable lien because it had available legal remedies for the protection of its interests. McArthur appeals from that order of the trial court.
“Unlike subcontractors and materialmen on private improvement projects, subcontractors and materialmen on public works projects have no viable lien claim as an alternative remedy to proceeding against the general contractor.” DeKalb County v. J&A Pipeline Co. , 263 Ga. 645, 647 2 437 SE2d 327 1993. They do, however, have a comparable alternative statutory remedy in the form of an action on the general contractor’s payment bond. Payment bonds shall be required for all public works construction contracts subject to the requirements of this chapter with an estimated contract amount greater than $100,000.00 . . . . No public works construction contract requiring a payment bond shall be valid for any purpose, unless the contractor shall give such payment bond . . . . OCGA § 36-91-90. Moreover, if the requisite payment bond is not available to the subcontractors or materialmen on a public works project, they are given the right to proceed directly against the owner.
