Beyer v. Zindorf

Citations

• 116 Wash. 199
• 198 P. 977
• 1921 Wash. LEXIS 808

Syllabus

<p>Highways (33)—Construction-—Contracts—Reserve Fund. Under a contract between the state and a contractor for the construction of a highway pursuant to Rem. Code, §§ 5867-5878, which does not authorize the retention of a percentage of the contract price for the protection of those supplying labor and material, no trust fund is created in favor of the latter by the provisions of the contract to the effect that part of the price earned might be retained to be applied by the state at its discretion upon any claims due and unpaid, the contract further providing that, on failure of the contractor to complete the contract according to its terms, the state was authorized upon notice to take over the work and complete it, and the contractor should not be entitled to any balance of the amount payable under his contract unless such unpaid balance should exceed the expense incurred by the state in finishing the work.</p>