How to Perfect a Payment Bond Claim
Identify whether the project was a federal, state, or county project., Check if you can make a claim., Read your state or local statute., Check deadlines., Meet with an attorney., Provide preliminary notices., Identify if you need to provide written...
Step-by-Step Guide
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Step 1: Identify whether the project was a federal
You might have worked on a federal, state, or county building.
The difference matters in terms of which law applies.
For example, if you worked on a federal project, then the federal “Miller Act” applies.States have their own “Little Miller Acts” that apply to state construction projects.In some states, there may even be “county Miller Acts.” These county acts often mirror the state law. -
Step 2: or county project.
Not everyone who worked on or supplied materials to a public project can make a claim on the bond.
Under federal law, for example, only the following people can make a claim:architects engineers surveyors subcontractors that contract directly with general contractors (called "first tier" subcontractors) subcontractors that contract with the first-tier subcontractor (called "second tier" subcontractors) “first tier” material suppliers that contract directly with a general contractor “second tier” material suppliers that contract with a first-tier subcontractor (but not with a first-tier material supplier) , State and local statutes can extend protection beyond the “second-tier” and provide more protection than the federal law.
For example, in Georgia, the law protects all subcontractors and providers of materials to the construction project.This includes “third-tier” or “fourth-tier” subcontractors.
You should be able to find your state law online.
Type “your state” and “Little Miller” or “bond payment notice” into your favorite search engine.
Some law firms have published 50-state surveys you may want to read.This information might not be up-to-date, so you should still perform your own research. , Under federal law, you have 90 days from the date you last did work or provided materials.
Make sure the notice is received within the 90-day window.
Don’t simply mail it on the 90th day.State and local laws may have different requirements.
You should read those laws to learn the details. , A qualified attorney can advise you about your state’s requirements and make sure that you properly prepare and serve a Notice of Claim.
You can schedule an appointment and have the attorney look over your draft.
You can get a referral to a construction attorney by contacting your local or state bar association.Once you have the name of an attorney, call him or her up.
Ask how much they charge. , You perfect a bond payment claim by sending a Notice to your general contractor.
However, your state may have other preliminary notices you must send.
Each state is different, and the notices required cannot be summarized here.
However, you should read your state law and meet with an attorney to make sure you provide all proper notices.
For example, in Georgia, the contractor may file a “Notice of Commencement” within 15 days of starting the project.
You will need to serve a Notice to Contractor within 30 days of beginning work.
If you don’t, then you will not be able to make a claim against the contractor., Not everyone has to file a Notice of Claim to perfect a payment bond claim.
For example, under federal law, someone who contracts directly with a general contractor does not need to provide notice., You can set up your Notice of Claim like a business letter.
Be sure to include both your name and your address on the letter, which is required.
Address the letter to the project's general contractor.
You should also give the letter a title.
In the title you should name the surety (the company that issued the bond) and the bond number.Although this information is not required, it is a good idea nonetheless. , Make sure to include the date on which you signed a contract to perform work as well as who you signed the contract with.
If you contracted with a subcontractor, then identify the subcontractor.
You should also identify the public work that you supplied with material or labor., You should also provide the name and addresses for the general contractor and any upper-tier contractors.For example, if you are a third-tier subcontractor, then you should provide the names of the two subcontractors above you. , This is another requirement for your Notice of Claim.Provide details about the work you performed or the materials you supplied to the project.
Also provide the dates you worked.
If you want, you can generally describe the work or materials provided and then refer to your invoices, which may contain more detail. , Both state and federal law will require that you accurately state how much money you are owed.You should go through your invoices and total the amount.
Also make copies of the invoices and provide them with your Notice of Claim. , Remind your general contractor that you are looking to them for payment, since you have not received it from the subcontractor.You can write something like the following: “Since I have not been paid, I am requesting that you pay me for the work and materials provided, in the amount stated above.” , You should insert a signature block at the end of the letter and also include the date.
Your signature block should contain the following information:name address phone number your title contractor registration number , You should send your notice to the general contractor by certified mail, return receipt requested.
Under some state laws, you can wait to serve a copy on the contractor after you serve the public entity.
In Illinois, for example, you have 10 days.Regardless of the law, there is no real reason to delay.
You can send the copy to the general contractor when you serve the public entity. , You should also give notice to the government agency that is having the construction done.
For example, if your state’s Department of Health contracted to build a new office, then you need to send notice to the Department.
Send the letter certified mail, return receipt requested.
Hold onto the receipt since this is proof that it was received.
Some states might let you make hand-delivery on the office.However, you are better off using a courier service so that you have something in writing that shows the date it was received. , You should also send a copy of your notice to the surety that issued the bond.You should use the same mailing methods that you used for the public entity and the general contractor. , In some states, such as Kentucky, you need to file your Notice of Claim in the county clerk’s office for the county where the government entity is located.You should check your state law to see if it contains a similar filing requirement. -
Step 3: Check if you can make a claim.
-
Step 4: Read your state or local statute.
-
Step 5: Check deadlines.
-
Step 6: Meet with an attorney.
-
Step 7: Provide preliminary notices.
-
Step 8: Identify if you need to provide written notice.
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Step 9: Format your letter.
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Step 10: Identify your contract.
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Step 11: Name the general contractor.
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Step 12: Explain the work you performed.
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Step 13: Identify the amount owed to you.
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Step 14: Make an explicit demand for payment.
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Step 15: Sign your notice.
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Step 16: Send a copy to the general contractor.
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Step 17: Mail a copy to the public entity.
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Step 18: Send a copy to the surety.
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Step 19: File an affidavit
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Step 20: if necessary.
Detailed Guide
You might have worked on a federal, state, or county building.
The difference matters in terms of which law applies.
For example, if you worked on a federal project, then the federal “Miller Act” applies.States have their own “Little Miller Acts” that apply to state construction projects.In some states, there may even be “county Miller Acts.” These county acts often mirror the state law.
Not everyone who worked on or supplied materials to a public project can make a claim on the bond.
Under federal law, for example, only the following people can make a claim:architects engineers surveyors subcontractors that contract directly with general contractors (called "first tier" subcontractors) subcontractors that contract with the first-tier subcontractor (called "second tier" subcontractors) “first tier” material suppliers that contract directly with a general contractor “second tier” material suppliers that contract with a first-tier subcontractor (but not with a first-tier material supplier) , State and local statutes can extend protection beyond the “second-tier” and provide more protection than the federal law.
For example, in Georgia, the law protects all subcontractors and providers of materials to the construction project.This includes “third-tier” or “fourth-tier” subcontractors.
You should be able to find your state law online.
Type “your state” and “Little Miller” or “bond payment notice” into your favorite search engine.
Some law firms have published 50-state surveys you may want to read.This information might not be up-to-date, so you should still perform your own research. , Under federal law, you have 90 days from the date you last did work or provided materials.
Make sure the notice is received within the 90-day window.
Don’t simply mail it on the 90th day.State and local laws may have different requirements.
You should read those laws to learn the details. , A qualified attorney can advise you about your state’s requirements and make sure that you properly prepare and serve a Notice of Claim.
You can schedule an appointment and have the attorney look over your draft.
You can get a referral to a construction attorney by contacting your local or state bar association.Once you have the name of an attorney, call him or her up.
Ask how much they charge. , You perfect a bond payment claim by sending a Notice to your general contractor.
However, your state may have other preliminary notices you must send.
Each state is different, and the notices required cannot be summarized here.
However, you should read your state law and meet with an attorney to make sure you provide all proper notices.
For example, in Georgia, the contractor may file a “Notice of Commencement” within 15 days of starting the project.
You will need to serve a Notice to Contractor within 30 days of beginning work.
If you don’t, then you will not be able to make a claim against the contractor., Not everyone has to file a Notice of Claim to perfect a payment bond claim.
For example, under federal law, someone who contracts directly with a general contractor does not need to provide notice., You can set up your Notice of Claim like a business letter.
Be sure to include both your name and your address on the letter, which is required.
Address the letter to the project's general contractor.
You should also give the letter a title.
In the title you should name the surety (the company that issued the bond) and the bond number.Although this information is not required, it is a good idea nonetheless. , Make sure to include the date on which you signed a contract to perform work as well as who you signed the contract with.
If you contracted with a subcontractor, then identify the subcontractor.
You should also identify the public work that you supplied with material or labor., You should also provide the name and addresses for the general contractor and any upper-tier contractors.For example, if you are a third-tier subcontractor, then you should provide the names of the two subcontractors above you. , This is another requirement for your Notice of Claim.Provide details about the work you performed or the materials you supplied to the project.
Also provide the dates you worked.
If you want, you can generally describe the work or materials provided and then refer to your invoices, which may contain more detail. , Both state and federal law will require that you accurately state how much money you are owed.You should go through your invoices and total the amount.
Also make copies of the invoices and provide them with your Notice of Claim. , Remind your general contractor that you are looking to them for payment, since you have not received it from the subcontractor.You can write something like the following: “Since I have not been paid, I am requesting that you pay me for the work and materials provided, in the amount stated above.” , You should insert a signature block at the end of the letter and also include the date.
Your signature block should contain the following information:name address phone number your title contractor registration number , You should send your notice to the general contractor by certified mail, return receipt requested.
Under some state laws, you can wait to serve a copy on the contractor after you serve the public entity.
In Illinois, for example, you have 10 days.Regardless of the law, there is no real reason to delay.
You can send the copy to the general contractor when you serve the public entity. , You should also give notice to the government agency that is having the construction done.
For example, if your state’s Department of Health contracted to build a new office, then you need to send notice to the Department.
Send the letter certified mail, return receipt requested.
Hold onto the receipt since this is proof that it was received.
Some states might let you make hand-delivery on the office.However, you are better off using a courier service so that you have something in writing that shows the date it was received. , You should also send a copy of your notice to the surety that issued the bond.You should use the same mailing methods that you used for the public entity and the general contractor. , In some states, such as Kentucky, you need to file your Notice of Claim in the county clerk’s office for the county where the government entity is located.You should check your state law to see if it contains a similar filing requirement.
About the Author
Karen Jimenez
Creates helpful guides on creative arts to inspire and educate readers.
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