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
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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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.
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