A Surety Bond Claim may be described as that which occurs when the principal in a surety bond does not meet their responsibilities agreed to. In such a case, the bond obligee may claim the principal has failed on the surety bond. The surety bond firm would then be required to pay the obligee the full bond value. For example, in the construction industry, the three parties in a performance bond are the contractor, who is the principal, the obligee, who is the owner and the surety as well. The claimant may be defined as the party who owns the right to make the bond claim.
Bond Claims and Mechanics Lien
are applicable when one’s working on a state construction project, which could be for the local municipality. When working on these projects, the payment is ensured through a bond. Therefore, one files a bond claim instead of a mechanics lien.
A mechanics lien is a claim on the property title where work has taken place. It applies to materials provided or jobs performed at a private business, residential area or even a commercial project. It is designed to offer the landowner reason to pay for completed work and ensure their title remains clear.
Filing a Bond Claim
Filing a bond claim is different from the mechanic’s lien. You first file your bond claim through some tough requirements that are different in various states. You have to comply with these rules to make sure your claim is enforceable.
Filing your bond requires many follow-ups, which may be exhausting. However, once you fill it out, the company will notify the relevant company of your claim. Among the information required also includes your work and claim. When the process slows down, ensure the company has all it requires to get approval. You can enforce your claim if it taking too long to be approved. You could do this through suing the company, however, it may cost you more, but it will surely push your needs forward.
Before filing your bond claim, ensure you are familiar with the guidelines. The varied states have different timelines to regulate bond claim due dates and the filing location. You should remember to submit backup materials so that the surety firm can see proof of pay as well as collect your sworn statement. It is advisable to have this material ready for the company so that your claim is quickly moved forward.