Construction Bond Claim

What is a Construction Bond Claim?

A Construction Bond claim (or a Bond Claim Notice) is generally used to claim payment on a state, county or municipal construction project. Private projects can also be bonded. Lien rights do not apply to state-owned property as the state government won’t allow anyone to foreclose on its land.

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Acts as a legally binding agreement among involved parties.

Protects payments from public projects similar to a Mechanic's Lien for private projects.

Exerts extra pressure on GCs to release payments.

Ensures funds for future projects.

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Construction Bond Claim

What are the requirements to file a Construction Bond Claim in your state?

Just like Mechanic's Lien for private projects, a Construction Bond helps you to get paid on public projects. Every state has different requirements and deadlines to file the bond claim. Some states require a Preliminary Notice to be sent before filing the bond claim. Check the map below to find more information about your state's Construction Bond Claim requirements.

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How to send a Construction Bond Notice

The first thing to remember is that Construction Bonds need to be filed within certain deadlines, just like intent to liens and liens. Each state has different bond claim guidelines and deadlines, so you need to check your state requirements.

Some states also require you to send Preliminary Notices – and these may be entirely different to the Preliminary Notices required in the same state for private projects.
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With SunRay Construction Solutions, sending a Bond Claim couldn’t be easier.

SunRay’s research services will include the following:

Confirming if there is a bond on the project.

Mailing the claim on bond to the required recipients.

Retaining records of all notices and liens on our database for easy future access.

Send a Bond Claim

What is the difference between a Mechanic's Lien and Construction Bond Claim?

Construction Bond Claim

Bond claim helps you in getting paid for public projects like State or County projects like schools, roads etc., and federal projects like courthouses, highways etc.,

Requires a preliminary notice as statutory in some states.

Requires bond and surety companies.

Cannot go for foreclosure if not paid, instead the payment bond can be claimed.

Mechanic's Lien

Mechanic's Lien helps you in getting paid for private projects like commerical buildings and residential properties.

Requires a preliminary notice as statutory in majority of the states.

Bond and surety companies are not required.

Can go for foreclosure if not paid.

Mechanic's Lien

Construction Bond Claim

A Mechanic's Lien can not be used on public projects. It can only help you get paid on private projects like commercial and residential jobs.

A Construction Bond Claim can be used to help you get paid on public projects. It can only be used on private projects that are bonded.

Some states require a preliminary notice before you file a mechanic's lien.

Some states require a preliminary notice before you place a claim against bond.

If you have a mechanic's lien in place and if you have not been paid for your work, then you can foreclose on the property.

If you have a bond claim in place and if you have not been paid for your work you may file suit on the bond.

Construction Bond Claim FAQs

Frequently asked questions on Construction/Payment Bond Claims

What is the purpose of a construction bond claim?

A Construction Bond claim, also known as a Bond Claim Notice, is typically used to seek payment on public construction projects at the state, county, or municipal level. Private projects can also be covered by bonds. Unlike private property, lien rights do not apply to state-owned land, as the government does not permit foreclosure on its property.

What are the four types of bonds in construction?

The four most common types of construction bonds are Performance Bonds, Payment Bonds, Bid Bonds and Surety Bonds.

What are bonds in building construction?

A construction bond provides protection for the owner against risks such as non-payment, poor performance, company default, and warranty issues. Also referred to as contract bonds, they ensure that the bondholder will meet the obligations outlined in the contract.

How can a claim a construction bond be used?

A Construction Bond Claim can help you secure payment on public projects. It is only applicable to private projects that are covered by a bond.

How to claim a construction payment bond?

You can follow the following steps -

Step 1 - Send a Preliminary Notice

Step 2 - File the Bond Claim

Step 3 - Submit Supporting Documents

Step 4 - Follow Up with the Surety Company

Step 5 - Collect Your Payment or Enforce Your Claim

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