A subcontractor that has not been paid for the work performed may have a claim against a contractor’s payment bond in order to get paid.
On many building projects, owners have begun to require general contractors to furnish payment and performance bonds. In turn, general contractors have begun to require their subcontractors to provide these same kinds of bonds. A subcontractor that has not been paid for the work performed may have a claim against a contractor’s payment bond in order to get paid.
To make a claim on the bond, a contractor should send the surety a notice of the claim. The notice should include all the necessary information regarding the claim (identify the project, identify the parties, identify the amount owed, and provide information regarding the labor or materials supplied). The notice should be sent certified mail so the contractor can prove it was received.