A subcontractor defaults on a $7,000,000 contract after being paid $5,000,000. The sub had furnished a performance bond of 100% of the subcontract price. A replacement subcontractor will cost an additional $3,000,000. Additionally, liquidated damages were assessed at $1,500 per calendar day and the project completed 100 days late. The default subcontractor was proven to cause the 100-day critical path delay.

1.What was the balance remaining in the GCs budget for this subcontractor?

2. What is the suretys monetary liability?

3. What are some reasons why the new subcontractor cost so much more than the unpaid balance (part 1 above)?