Payment Bond Claims

A bond claim can be the payment remedy when a lien is not available.

A payment bond is a source of payment protection for contractors, subcontractors, suppliers, and others who furnish labor, services, or materials to a construction project. On some projects, the payment bond may be the primary remedy if a construction participant is not paid.

Payment bond claims are common on both private and public projects. The first step is identifying the project type and bond type. A private project may involve a private payment bond. A Florida public project may involve Florida Little Miller Act. An FDOT project may involve FDOT Bond Claims. A federal project may involve Federal Miller Act.

The bond claim process shares similarities with construction lien practice, but it involves different documents and deadlines. For example, a Notice to Contractor serves a role similar to a Notice to Owner, putting the bonded contractor and surety on notice of the claimant’s involvement in the project. Likewise, a Notice of Nonpayment serves a role similar to a Claim of Lien, asserting a claim for unpaid work against the bond rather than against the property.

Timing differences are also important. For many bond claims, the deadline to file a lawsuit runs from the date of final furnishing, not from the date a Notice of Nonpayment is served. This differs from lien practice and can result in a shorter timeframe to take legal action.

The bond claim process typically requires reviewing the bond, contract documents, payment applications, invoices, Change Orders, notices, and deadline history. Missing a bond claim deadline can be just as damaging as missing a lien deadline.

Payment bond disputes often arise from unpaid contract balances, retainage, disputed Change Orders, project delay issues, defective work defenses, termination, or downstream subcontractor and supplier claims.

Montesino Law assists clients with evaluating, preparing, pursuing, and defending payment bond claims throughout Florida.