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Public Contract Bonds and Contract Price Increases

By on April 24, 2013

One of the basic differences between contracts for public projects and contracts for private projects are the claims that unpaid parties can file.  Specifically, while unpaid subcontractors and suppliers on private projects can file mechanics liens, on public projects those unpaid parties must file claims on a general contractor’s payment bond.  General contractors on public [...]

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ALERT: Credit Demotion for Newport Bonding & Surety Company

By on April 30, 2012

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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Who Do I Send My Bond Claim To, and How?

By on February 23, 2012

Two weeks ago, as part of this State Bond Claim Blog Series, I published: “Tip: Send Your Bond Claim To Surety To Ensure Maximum Protection.” I got a surprising amount of feedback to this post because many of our clients and readers had previously confronted the situation discussed: When a prime contractor hadn’t delivered the [...]

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Why Bond Claims Can Be Better Than Mechanic Lien Claims

By on February 16, 2012

It’s surprising how often I encounter disappointment when I explain that a traditional mechanic’s lien cannot be filed against a state, county or federal project. The terms “mechanic’s lien” and “lien” get thrown around so much in the construction industry, that they’ve acquired a mystic existence.  If there aren’t “lien rights,” disappointment ensues. As I’ve [...]

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Tip: Send Your Bond Claim To The Surety To Ensure Maximum Attention

By on February 9, 2012

When filing a bond claim, most state laws only require the claimant to file their notice of claim with the prime contractor and/or the public entity commissioning work. It’s then the responsibility of those parties to report the claim to the bonding company. One reason for this is simply because the claimant may not know [...]

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

By on January 12, 2010

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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Got a Public Contract?: Be Sure to Preserve Your Rights to Payment

By on December 14, 2009

Over the past two years, the construction industry has seen a boom in public works. This is due to lower construction costs, influx of federal stimulus funds and lower financing rates for local governments. The result has meant tons of public work for contractors, who benefit both from Davis-Bacon wages and bonded work, which virtually [...]

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