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Am i secured with this payment bond from payment if the contractor is in default of non payment?

Anonymous Contractor

I am going to deliver sheet pile (material) to Purple Line for the total sum of 567834 USD. I would like to know if this payment bond secures our payment for this project if Puple line is in default to us( and does not pay us) many thanks

2 replies

Richard Storrs

Construction Lawyer

Attorney and Owner at The Storrs Law Firm

| 97 reviews

Jun 15, 2020

A payment bond will provide good protection. You must take care to satisfy any notice requirements in the bond or under federal (the Miller Act) or state (Maryland Little Miller Act) law. Bonds are normally required for federal or state public projects, and some private owners require the contractor to post payment and performance bonds. Unless the bond has a different requirement, suppliers whose contracts are with a sub- or sub-subcontractor, but not the contractor directly, must give written notice to the contractor within 90 days after labor or materials were last furnished. The notice must include the amount claimed, the person to whom labor or materials were provided, and must be sent by certified mail to the contractor.

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Joseph Katz

Construction Lawyer

Legal Guard Lawyer

Principal Attorney at Katz Law

| 30 reviews

Jun 15, 2020

The payment bond should protect you, but make sure you provide timely notice to the principal on the bond(s), not generically to "Purple Line"! The Purple Line construction project is a complex structure of the concessionaire, the lead contractors and several "dedicated subcontractors" - and each of them may have provided bonding that might be available to you, depending on where exactly along the track your material is being utilized at. An experienced construction law attorney should definitely be contacted to further investigate and make sure your rights are well protected. I can be reached through my Levelset profile for any further questions.

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form an attorney-client relationship between Katz Law, LLC and yourself or any other person or entity. In all cases, any particular outcome or resSee More...See More...

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