Subcontractor Payment Claim Against Public Entity Denied Absent Express Stipulation

A construction company, after contracting to carry out work for a public entity, entered into a subcontract for the electrical portion of the project with another enterprise; when the initial contractor delayed payment to the subcontractor, the latter initiated proceedings seeking payment from the public entity, arguing that under the applicable regulations, the entity was directly liable to the subcontractor for the amount due because the work had been verifiably completed and accepted. The court rejected the claim against the public entity, reasoning that direct liability to the subcontractor for payment only arises if the contract explicitly provides for such a stipulation or if the principal contractor has formally assigned the receivables to the subcontractor, neither of which was established in this case, thus maintaining the contractual privity between the original contractor and the subcontractor.