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Payment Bonds Protect Payment Rights on Public Projects: But When Are They Required?

Generally speaking, when a party performs work on a public works project, the necessary remedy for non-payment is to make a claim against the payment bond. Similarly to the mechanics lien right available on private projects, a bond provides security to ensure payment of parties working on the project. Unlike a mechanics lien, however, making […]

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Risk Management – Bonds and Liens

In a recent publication of Construction Executive there is a nice article written by J. Craig Rusk on alternatives to both payment and performance bonds in the construction industry. These types of bonds are usually great places for contractors to make claims when not paid. Performance bonds secure that the contract will be performed and […]

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Lien Law Alert: Washington Bond Law to Change in 2016

The Lien Blog Provides Alerts to Upcoming Lien and Bond Law Changes The lien blog is a great place to learn about upcoming lien and bond law changes throughout the nation, and to figure out what effect these changes will have.  Here is a general link to updates on the changing face of construction lien/bond […]

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Don’t Be Afraid Of Threats To Bond Off Your Mechanics Lien: Explaining Mechanics Lien Bonds

Many folks who use the Zlien service to file a mechanics lien are confronted with a post-filing situation when the property owner or general contractor “threaten” to remove the lien with a mechanics lien bond. I put the word threaten in quotes because folks always describe this event as a threat, but really, it’s not […]

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ALERT: Credit Demotion for Newport Bonding & Surety Company

A.M. Best Co. announced last week the demotion of Newport Bonding & Surety Company, decreasing their credit rating to a “B.”  The lower rating is the apparent result of “significant uncertainty regarding Newport’s overall financial condition as it has not yet filed its year-end 2011 annual statement” (Quote from Yahoo Finance Story). What does this mean? […]

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Federal Jurisdiction On Basis Of Miller Act Requires A Bond

I’ve come across a decision from the United States 5th Circuit Court of Appeal that is interesting for construction lawyers helping clients who work on federal projects. In Richard A. Arena Jr d/b/a Water-Tite Roofing v. Graybar Electric Company, Inc., et al, the 5th Circuit held that a federal court does not have jurisdiction over […]

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Primer on Mechanics Lien Bonds and Bonding Off A Mechanics Lien

This article was written by Danielle Rodabaugh of SuretyBonds.com, an agency that issues surety bonds to contractors nationwide. As a part of the agency’s surety bond educational outreach program, Danielle writes informative articles that explain complicated bonding issues to contractors and their lawyers. It’s no secret that filing a lien on a property is the most effective way for […]

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Your Mechanic Lien Was Bonded…Now What?

After you file a mechanic lien, a number of things may happen.   The lien may be paid off (and then canceled), or you may be required to file a lawsuit to foreclose on the mechanics lien (Read our previous blog post:  What Happens After You File A Mechanics Lien?) Something else may happen after a […]

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Don’t Know Who Bonded A State Or Federal Project? Just Ask.

In nearly every circumstance, a general contractor on a federal or state project is required to maintain a bond for the work being performed.   These bonds protect the payment rights of subcontractors, sub-subcontractors and suppliers.    In the event any of these parties are not paid on the project, the unpaid party can typically file a […]

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If A Construction Lien is Bonded…Does that Circumvent Payment to an Claimant?

Typically, a construction lien is filed to have a number of desired effects:  (1) To prevent the sale or transfer of the property; (2) To hold multiple parties without contractual privity liable for the debt; and (3) To provide contractors with a faster and more direct remedy against parties in litigation. But if a homeowner […]

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