Disclaimer: The information on this webpage is NOT the same as legal advice. SunRay Construction Solutions, LLC is not an attorney or a law firm. We recommend that you consult with an attorney.
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. They have what’s called sovereign immunity. Instead, you can claim your payment rights through a construction bond.
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 other liens or notices. 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. In addition, you need to supply all relevant paperwork and documentation related to your contract so that your claim on bonds cannot be disputed. With Sunray Construction Solutions, sending a bond claim couldn’t be easier.
SunRay’s research services will include the following:
- Researching nature of the construction project and identifying your state requirements
- Researching the Identity of the bond or surety company
- Mailing the filed bond to the appropriate party
- Retaining records of all notices and liens on our database for easy future access
Is a Construction Bond claim necessary?
If you’re working on a state or county construction project that’s bonded and have not been paid for your supplies, labor and/or services, sending a bond claim can be a powerful way of receiving your payment.
How does it work?
Although the state government will not allow liens on its property, prime contractors on some state projects are required to post a bond that will cover the payment of all subcontractors and suppliers on the project. This payment bond is secured by a surety company, which covers the debt if the prime contractor defaults. The main difference from a Mechanics Lien is that a lien is secured against a property, while a Construction Bond claim is secured by the payment bond.