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Fifth Circuit Upholds Payment Bond Rights

Payment bond rights under your state’s Little Miller Act statute are not easily avoided. Little Miller Act statutes allow subcontractors and lower-tiered parties to make claims against the payment bond that every general contractor must post for public projects. This process guarantees a certain level of protection for subs while ensuring a level of efficiency […]

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Miller Act Rights Not Easily Waived

General Contractors and Subcontractor Legal Rights

The U.S. Miller Act  gives subcontractors, suppliers, and laborers a bond claim on federal projects. The Act requires that a payment bond be posted by the prime contractor for every federal project. Think of the bond as a pile of money. When a contractor or subcontractor goes unpaid, they have a claim against this pile […]

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Tennessee Amendment Changes Payment Bond Details

Payment bonds are meant to be for the benefit of subcontractors and suppliers, generally speaking. Bonds are piles of money put up by the general contractor or owner of a property. Subcontractors and suppliers may submit claims against the pile of money for lack of payment. This process avoids hold ups on work projects by […]

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What Are Performance and Payment Bonds?

We talk a lot about mechanics liens and their benefits, but what happens if you are working on a public project and are unable to file a mechanics lien against the property? That is where bond claims come in. Many people become confused about whether to file a mechanics lien or bond claim. The simple answer […]

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Arizona Public Preliminary Notice Delivery Method Clarified

In Arizona, every party without a direct contract with the general contractor is required to give a preliminary notice within 20 days of the party’s first furnishing of labor and/or materials in order to preserve the right to make any necessary future bond claim. While the failure to provide the notice within the noted 20 days may not […]

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Minnesota Court Promotes Construction Payment Fairness – Even At Expense of Innocent Surety

The construction payment process has a fairness problem. All too often, construction payment fairness is marginalized by parties leveraging their respective positions on the contracting chain, in an attempt to gain some sort of real or perceived advantage. Slow payments, over-reaching lien waivers, the risk of non-payment or default, and the convoluted process of construction […]

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Subcontractors Beware: Texas City Purposefully Ignores Bonding Requirements

It’s unambiguous that Texas law requires a payment bond be posted for all construction projects exceeding $25,000 in value. It’s unambiguous that the new Kilgore Baseball Complex project in Kilgore, Texas exceeds this value. Nevertheless, the Kilgore city council has voted to purposefully not follow the law.  Let’s repeat that:  The Kilgore city council voted to […]

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Pursuing or Defending a Bond Claim? Construction Executive Risk Management Lays Out Critical Information

important-information-bond-claims

In the world of surety bonds, payment bonds are often the overlooked siblings of performance bonds. As explored in a previous frequently asked questions post — The Difference Between Payment and Performance Bonds — performance bonds are placed to protect those up the contracting chain against non-performance by those below the chain, while payment bonds […]

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