South Dakota Bond Claim Guide and FAQs

In South Dakota, all parties who furnish labor and/or materials to the general, or to first-tier subcontractors, are entitled to make a bond claim. It is unclear whether parties more remote than those contracting with a first-tier sub are entitled to protection.

Contract Funds: The claim must be filed within 20 days of the claimant’s last furnishing or labor and/or materials to be fully protected. If the 20-day deadline is missed, the claim will generally be limited to the amount due to the general contractor at the time the claim is made. However, if the claimant a “settlement and statement of account” from the general contractor, signed and verified by the contractor, the full amount of the claim may be protected even if the 20-day period is missed. Finally, if the general contractor files a notice to file claims, all claims are due within 120 days of the publishing of that notice.

Bond Claim: The bond claim must be received more than 6 months, but less than 1 year after completion and final settlement of the contract. Note, however, that specific requirements of the bond will be held to control, so obtaining a copy of the bond is generally best practice.

Contract Funds: The claim must be provided to both the officer of the contracting public entity, and the general contractor.

Bond Claim: The bond claim must only be given to the contracting public entity.

Contract Funds: Generally suit must be filed within 30 days of acceptance of claimant’s work, but if the contractor publishes a notice to file claim, suit must be initiated within 120 days of publication of the notice.

Bond Claim: Suit must be initiated more than 6 months, but less than 1 year after completion of the project. However, if any other party has already initiated a suit – the claimant must join that suit as an intervener within 1 year of final acceptance of the project.

Contract Funds: The only information specifically required to make a claim on the contract funds is a verified statement of account due after allowing credits.

Bond Claim: A bond claim in South Dakota must include an affidavit stating that materials for the prosecution of work were supplied by the claimant, that claimant has not been paid. After receipt, the public body must send a copy of the bond to the claimant.

For both claims, it may be advisable to also include a description of the labor and/or materials supplied, and to identify the project and the hiring party.

Contract Funds: Must be filed with the public entity, and delivered to the general contractor.

Bond Claim: Must be furnished to the contracting public entity. This is generally held to mean delivered by either certified or registered mail, or by personal service.

South Dakota Public, State and County Project Preliminary Notice FAQs