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Are our payment rights protected through a pay ad performance bond?

Arizona

We are not sending a prelim notice to a job since customer provided us a pay ad performance bond. Will be still be protected to collect payment?

1 reply

Oct 7, 2021
Always send a preliminary 20-day notice. No exceptions. You need to look at the bond as well. Most statutory and contractual bonds require some form of notice, at least from those not in direct contract with the bond's principal. Failure to give proper and timely notice could be fatal to the bond claim.
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