Payment Bond Claim: How to Get Paid by a Surety Bond in Construction

Hal EmalfarbMechanics Lien

If you are a construction material supplier or service provider, you should have to sign a payment bond in advance with the project owner for any construction project.  Thus, it will help the contractor to claim dues for material supplying services through a legal process. In this article, you will come to know what payment bond claim is and ways to file for a payment bond claim in the U.S. to recover the dues in construction?

What is a Payment Bond?

A payment bond is a legal aid provided to the subcontractors or suppliers of construction materials to reserve the rights to claim full payment for supplying and services for the project. It is a type of legal bond, which helps contractors to recover the due amount for construction projects. You will get surety from the company or property owner to the subcontractors. For this purpose, a bond will sign by both parties.

Also Read: A Primer On Stop Notice And Payment Bond Claims

Payment Bond Claim in the United States

If you are a construction material supplier in the United States, you will get the legal right of payment bond claims that vary from state to state. According to the payment bond claim in the U.S., you will get legal rights to sign a payment bond with the owner before starting the project. For instance, you will find the “Federal Miller Act”, which varied state-by-state in the United States. The rules of payment bond will be set by the municipal board of state itself. Thus, it enables the subcontractors and suppliers in the United States to claim dues of the construction projects from the owner in a legal way.

To claim the due amount from the project owner in a legal way, you need to file a mechanics lien against him. For this aim, you can also take the aid of professional lien consultants or construction lawyers in the United States.

For betterment, you can contact mechanics lien lawyers in California. The city is a hub of some reputed construction law firms, where you will meet with experienced construction lawyers. They have extensive knowledge of payment bond claims cases and can file for a lien against the owner to recover dues. Construction attorneys in California will assist you in filing documentation and follow the legal process to pay bond claim cases as per state rules.

Ways to Get Dues From Surety Bond in Construction

If you have dues in the construction project for material supplying or services, you can take advantage of the surety bond or payment bond claim contract signed earlier between you and the property owner. You can start the process of filing a mechanics lien with help of an experienced construction lawyer. You can hire the best construction lawyer to handle your case too. According to the lien rules in the U.S., you can get the dues from a surety bond after performing the following steps:

1. Take A Copy of the Payment Bond

It is the first step you need to raise before starting a construction project. Make sure you have already signed a payment bond or surety bond for full payment and taken a copy of the bond from the owner too. The payment bond claim contract will include complete details of services, material supply, and payment details as well. It is legal to get a copy of the bond claim signed between you and the property owner. So, no objection can apply for the same by the owner. To get a copy of the payment bond claim, you have to file a request from the authority which is providing construction labor and material for the project.

Also Read: The 9 Elements Of A Valid Claim Of Lien

2. Prepare a Mechanics Lien to File Payment Bond Claim

You will have to follow the legal process of claiming a payment bond by preparing a mechanics lien as per state lien rules. Before you file the lien, you have to work on the following step:

Send a Notice of Intent

It is legal to send a notice of intent to the property owner for clearing the dues on time. You can also set the time frame or duration to clear the dues to date or months. For this, you have to grant legal permission from the court in writing. Now, you need to take confirmation from the owner for notice that he will clear the dues by the specified time in the notice. You may send several notices or reminders to the property owner for clearing dues.

3. Submit Your Bond Claim

If you did not get complete clearance of dues from the property owner after sending notices of intent, you finally need to submit your bond claim or follow the steps for the same. Your bond claim will work upon notice of intent that will include clear details of things like:

•        Deadline to pay the dues

•        Mode of payment to clear the dues (complete payment or installments)

You need to mention such details in the payment bond claim or notice of intent in advance and ensure it works for the owner too.

4. Take Your Bond Claim in Court

After applying several notices of intent and bond claim strategies, if you are still unpaid full amount, you finally need to take your bond claim issue to court. For handling your case in court, you can take the aid of professional mechanics lien lawyers in California. The lien attorneys in the city have expertise in managing lien cases of the construction domain and can recover your dues through legal steps. Also, the lawyers will process your payment bond claim case as per state rules which will be authentic for sure.

Thus, above are some vital steps to follow to file a mechanics lien and get paid the dues for a construction project in the United States. If you want to hire a professional construction lawyer for your payment bond claim case in the U.S., you can contact “National Lien and Bond”, which is a reputed law firm in the country. For more details, visit the website www.mechanicslien.com