Home>Levelset Community>Legal Help>I had a few questions about a current claim we have on the Bond for this project (# #3557022 )

I had a few questions about a current claim we have on the Bond for this project (# #3557022 )

New YorkBond Claims

In our contract with them, they are responsible for damaged/missing units and now that we have removed equipment, we are now documenting all damage to our units and the dollar amount owed to us will go up. How does this get handled with ZLEIN. Do I need to do anything other than update the amount? or does new documents need to be sent out? Please advise.

1 reply

Mar 25, 2019

That's a good question. First and foremost, I should mention that I am unable to provide any legal review of your situation, and I'm not able to provide you any advice on how you should proceed. However, I am able to provide some relevant legal information, and that should help you come to your own conclusions. First, it's worth noting that not all amounts that might be owed under a contract will be subject to lien or bond claims. Under § 137(3) of the New York Little Miller Act, bond claims will be available for "Every person who has furnished labor or material...in the prosecution of the work provided for in the contract and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was performed or material was furnished by him for which the claim is made..." (emphasis added). That section of NY's Little Miller Act would appear to limit bond claims to amounts that are directly tied to the work, materials, or equipment rented for the performance of work. Amounts that might also be due under the contract that don't represent what's owed for the actual improvement (such as, potentially, interest payments, late fees, or damages to equipment) might not be able to be claimed in a New York bond claim - though some other method of recovering that payment would still certainly be available. Then again, since it represents an amount due under contract, there's a chance that it'd be an acceptable inclusion. Regardless, when a bond claim has already been made but additional amounts need to be incorporated, a claimant could likely send some form of a revised or amended bond claim to the surety. While the New York Little Miller Act does not specifically provide for the amendment or revision of claims, as long as the updated claim is made prior to the deadline to do so, a claimant shouldn't have much problem with updating their claim with the surety. For more information on New York bond claims, including deadlines and other requirements, this resource should be helpful: New York Public Project Overview.

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