--- title: Iowa DOT Ordered to Pay Subcontractors description: Iowa DOT Ordered to Pay Subcontractors --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - [Environmental, Health & Safety](https://goosmannlaw.com/health-safety/) - [Estate Planning](https://trustlawcounsel.com) - [Gestational Surrogacy & Adoption](https://goosmannlaw.com/gestational-surrogacy-adoption/) - [International Law](http://goosmannlaw.com/international-law/) - [Litigation / Trial Law](https://goosmannlaw.com/litigation-trial-law/) - [Local Counsel](https://http://goosmannlaw.com/local-counsel/) - [Mergers & Acquisitions](https://goosmannlaw.com/mergers-acquisitions/) - [Rapid Response](https://goosmannlaw.com/rapid-response/) - [Industries](https://goosmannlaw.com/industries/) - [Agribusiness & Cooperatives](https://goosmannlaw.com/agribusiness-cooperatives/) - [Construction](https://goosmannlaw.com/construction/) - [Cyber Law and Telecommunications](https://goosmannlaw.com/cyber-law/) - [Education](https://goosmannlaw.com/education/) - [Health Care](https://goosmannlaw.com/health-care/) - [Manufacturing](https://goosmannlaw.com/manufacturing-law/) - [Multifamily Housing](https://goosmannlaw.com/multifamily-housing-law/) - [Non-Profit & Tax Exempt Organizations](https://goosmannlaw.com/non-profit-law/) - [Real Estate](https://goosmannlaw.com/real-estate/) - [Transportation](https://goosmannlaw.com/transportation/) - [Tribal](https://goosmannlaw.com/tribal/) - Our Firm - [Firm News](https://blog.goosmannlaw.com/firm-news) - Careers - [Attorneys](https://goosmannlaw.com/careers/attorneys/) - [Administration](https://goosmannlaw.com/careers/administration/) - [Internships](https://goosmannlaw.com/careers/internships/) - [Client Testimonials and Results](https://goosmannlaw.com/our-firm/client-testimonials-and-results/) - [Culture, Diversity, and Community](https://http://goosmannlaw.com/our-firm/culture-diversity-and-community/) - [Women-Owned Business](https://goosmannlaw.com/our-firm/women-owned-business/) - [Associations & Memberships](https://goosmannlaw.com/associations-memberships/) - [Firm History](https://goosmannlaw.com/firm-history/) - Blogs - [CEO Law Review](https://blog.goosmannlaw.com/ceo-on-your-side) - [Construction Lawyer](https://blog.goosmannlaw.com/construction-lawyer-on-your-side) - [Cyber Lawyer](https://blog.goosmannlaw.com/cyber-lawyer-on-your-side) - [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side) - [Divorce Docket](https://blog.goosmannlaw.com/divorce-lawyer-on-your-side) - [Food for Thought](https://blog.goosmannlaw.com/agricultural-lawyer-on-your-side) - [HR Legal Insider](https://blog.goosmannlaw.com/human-resources-on-your-side) - [Law Doc](https://blog.goosmannlaw.com/health-lawyer-on-your-side) - [Paralegal Review](https://blog.goosmannlaw.com/paralegal-review/) - [Real Estate Lawyer](https://blog.goosmannlaw.com/real-estate-lawyer-on-your-side) - [Risky Business](https://blog.goosmannlaw.com/risk-manager-on-your-side) - [The Banker’s Suit](https://blog.goosmannlaw.com/banking-lawyer-on-you-side) - [Trial Law Review](https://blog.goosmannlaw.com/trial-lawyer-on-you-side) - [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side) - Resources - [COVID-19 Resource Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - [Podcast](http://podcast.goosmannlaw.com/) - [Videos](https://goosmannlaw.com/videos/) - [FREE eBooks & Tools](https://goosmannlaw.com/free-ebooks-tools/) - Contact Us - [Office Locations](https://goosmannlaw.com/locations/) - [Sioux City Law Firm](https://goosmannlaw.com/locations/sioux-city-law-firm/) - [Sioux Falls Law Firm](https://goosmannlaw.com/locations/sioux-falls-law-firm/) - [Omaha Law Firm](https://goosmannlaw.com/locations/omaha-law-firm/) - [Spirit Lake & Spencer Law Firms](https://goosmannlaw.com/locations/spirit-lake-and-spencer-law-firm/) - [Real Estate Closings Office](https://goosmannlaw.com/locations/real-estate-closing-office/) - [Submit a Testimonial](https://goosmannlaw.com/submit-a-testimonial/) - [Sign Up for Our Newsletter](https://goosmannlaw.com/sign-up-for-our-newsletter/) - [Pay Online](https://goosmannlaw.com/pay-online-3/) - [  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Litigation & Trial](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-trial) [Construction News and Insights](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/construction-news-and-insights) [Litigation News and Insights](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-news-and-insights) # [Iowa DOT Ordered to Pay Subcontractors](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/iowa-dot-ordered-pay-subcontractors) By [Goosmann Law Team](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team)   |  3, February 2014 [READ NOW](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/iowa-dot-ordered-pay-subcontractors) [Read Post](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/iowa-dot-ordered-pay-subcontractors#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Logos/Logo1.jpg?width=60&name=Logo1.jpg)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team) [Goosmann Law Team](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team)  Tags: [Litigation & Trial](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-trial) [Construction News and Insights](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/construction-news-and-insights) [Litigation News and Insights](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-news-and-insights) February 3, 2014. On Friday, the Iowa Supreme Court issued a decision which requires the Iowa Department of Transportation (DOT) to pay three subcontractors after they completed work on state projects but were never paid by the general contractor. The case involves improvements made to rest stops on Interstate 80. The DOT hired the general contractor, Universal Concrete, Ltd., which in turn hired Star Equipment, Manatt’s Inc. and Short’s Concrete Cutting Co. to provide equipment, materials and labor. After the general contractor failed to pay the subcontractors, they sued the general contractor and the Iowa DOT. Notably, the project involved a contract entered into by the DOT with a general contractor, Universal Concrete, who was classified by the state as a “Targeted Small Business” (TSB), meaning it is minority-owned and exempted from the requirement of posting a surety bond to secure payments on the project. Thus, there was no surety bond from which the subcontractors could otherwise have sought payment (Iowa Code Chapter 573, which is Iowa’s counterpart to the Federal Miller Act, provides protections for contractors to secure payment on public projects; generally, a surety bond secures payment since mechanics’ liens cannot be filed on public property in the State of Iowa). The trial court judge ruled against the subcontractors, finding that state law did not require the DOT to pay on the general contractor’s obligations. The Supreme Court reversed, finding that subcontractors of state-hired TSB general contractors can seek payment from the state if the general contractor fails to pay. In reaching this conclusion, the Supreme Court reasoned that Iowa Code Section 573.2 acts as a waiver of sovereign immunity when the requirement of a bond is waived (such as when a TSB is hired as a general contractor), thereby allowing subcontractors to recover the balance owing directly from the DOT. A copy of the decision, which is favorable to subcontractors providing labor or services for TBS contractors on public projects, can be found [here](http://www.iowacourts.gov/About_the_Courts/Supreme_Court/Supreme_Court_Opinions/Recent_Opinions/20140131/12-1378.pdf). Goosmann Law Firm, PLC can be contacted at [info@goosmannlaw.com](mailto:info@goosmannlaw.com) or by calling 712.226.4000. ### Select Different CTA for each Post from Blog Editor [![New Call-to-action](https://no-cache.hubspot.com/cta/default/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422) ### Subscribe Our Blog Thanks for submission!! - Recent - Popular ### Posts by Topic - [Litigation & Trial (141)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-trial) - [Litigation News and Insights (29)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-news-and-insights) - [Firm News (15)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/firm-news) - [Construction News and Insights (14)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/construction-news-and-insights) - [Business News and Insights (6)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/business-news-and-insights) - [trademark (6)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/trademark) - [COVID-19 (5)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/covid-19) - [CEO (4)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/ceo) - [Employment Litigation (4)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/employment-litigation) - [Intellectual Property (4)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/intellectual-property) - [Copyright Law (3)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/copyright-law) - [Depositions (3)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/depositions) - [Employment Law (3)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/employment-law) - [Lawsuit (3)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/lawsuit) - [Business Litigation (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/business-litigation) - [Confidentiality (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/confidentiality) - [Divorce & Family Law (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/divorce-family-law) - [Federal Rules (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/federal-rules) - [Filing a Lawsuit (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/filing-a-lawsuit) - [Insurance (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/insurance) - [Mediation (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/mediation) - [Starting A Lawsuit (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/starting-a-lawsuit) - [Transportation (2)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/transportation) - [Agriculture (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/agriculture) - [Arbitration (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/arbitration) - [Attorney Client Privilege (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/attorney-client-privilege) - [Barratry (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/barratry) - [Business Law (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/business-law) - [Comparative Negligence (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/comparative-negligence) - [Construction (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/construction) - [Construction Law (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/construction-law) - [Corporate Law (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/corporate-law) - [Disputes (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/disputes) - [Document Production and Document Retention (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/document-production-and-document-retention) - [EEOC (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/eeoc) - [Email (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/email) - [Employment News and Insights (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/employment-news-and-insights) - [Expert Testimony (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/expert-testimony) - [Female Attorney (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/female-attorney) - [HR Legal Insider (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/hr-legal-insider) - [Holiday Lawsuits (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/holiday-lawsuits) - [Holiday Season (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/holiday-season) - [Human Resources (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/human-resources) - [Iowa Consumer Credit Code (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/iowa-consumer-credit-code) - [Landlord (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/landlord) - [Lawsuits (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/lawsuits) - [Legal Fees (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/legal-fees) - [Liability (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/liability) - [Markman Hearing (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/markman-hearing) - [Non-Compete (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/non-compete) - [Omaha Attorney (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/omaha-attorney) - [Personal Jurisdiction Law (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/personal-jurisdiction-law) - [Property Damage (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/property-damage) - [Real Estate News and Insights (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/real-estate-news-and-insights) - [Respondeat Superior (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/respondeat-superior) - [Sioux Falls Law Firm (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/sioux-falls-law-firm) - [Social Media (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/social-media) - [Subpoenas (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/subpoenas) - [Summary Judgement (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/summary-judgement) - [Summons (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/summons) - [Tenant (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/tenant) - [Trade Secrets (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/trade-secrets) - [Trust Law Counsel (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/trust-law-counsel) - [copyright (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/copyright) - [patent law (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/patent-law) - [settlement (1)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/settlement) DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. #### Let Us Know What You Thought about this Post. Put your Comment Below. [Previous Post](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/civil-lawsuit-take-long-get-trial) ##### [Why Does a Civil Lawsuit Take so Long to Get to Trial?](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/civil-lawsuit-take-long-get-trial) [Next Post](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/eighth-circuit-rules-manufacturer-cancer-drugs-due-failure-warn) ##### [Eighth Circuit Rules Against Manufacturer of Cancer Drugs due to Failure to Warn](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/eighth-circuit-rules-manufacturer-cancer-drugs-due-failure-warn) ### Contact Info **Sioux City Location** P. 712-226-4000 F. (712) 224-4517 **Sioux Falls Location** P. (605) 371-2000 F. (605) 275-2039 **Omaha Location** P. (402) 280-7648 F. (402) 505-3967 --- [Disclaimer](http://goosmannlaw.com/list-all-blogs/disclaimer/) | [Privacy Policy](http://goosmannlaw.com/privacy-policy/) ### Locations **Sioux City Location** 410 5th Street Sioux City, IA 51101 **Sioux Falls Location** 5010 S. Minnesota Avenue, Suite 100 Sioux Falls, SD 57108 **Omaha Location** Advent Building 17838 Burke Street, Suite 250 Omaha, NE 68118 ![Goosmann](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/Lockbox%20Lawyer/goosmann-white.png?width=250&name=goosmann-white.png "Goosmann") Goosmann Law Firm is a FULL SERVICE LAW FIRM with locations in Sioux City, Iowa, Sioux Falls, South Dakota, and Omaha, Nebraska. Goosmann Law attorneys are licensed to practice in Iowa, Nebraska, South Dakota, and North Dakota. Their attorney team's practices and industries include but are not limited to Agribusiness and Cooperatives, Banking and Finance, Bankruptcy, Restructuring and Workouts, Business, Construction, Cyber Law and Telecommunications, Divorce and Family Law, Education, Employment, Environmental Health and Safety, Gestational Surrogacy and Adoption, Health Care, Litigation and Trial Law, Manufacturing, Mergers and Acquisitions, Municipal, Nonprofit and Tax Exempt Organizations, Real Estate, and Transportation, Tribal, Wills, Trusts, Estate Planning, and Probate Law. Goosmann © Copyright 2017