Because subcontractors lack privity with the owner, the general contractor asserts their claims. A liquidating agreement typically limits the contractor's liability to the subcontractor to amounts recovered from the owner.
Severin doctrine limits federal pass-through claims.
Alternative Names:
Pass Through Claim|Sponsored Claim
Why it Matters?
The Severin doctrine bars a pass-through claim in federal contracting where the prime has no liability to the subcontractor, which is precisely what a liquidating agreement appears to create. Properly drafted liquidating agreements preserve conditional liability rather than eliminating it, which satisfies Severin while capping the contractor's exposure. That drafting distinction determines whether the claim survives at all.
Frequently Confused with
Related terms
Frequently asked questions
What is the Severin doctrine?
How do liquidating agreements satisfy it?
