We work with contractors and large hauling companies who dispose of material on our facility. Since we cannot lien the project property, are we able to file a claim against the contractor's surety bond?
1 reply
Mar 10, 2020
Claims against a contractor's license bond operate pretty differently than mechanics lien claims do, and they're also pretty different from traditional payment bond claims as well. Still, if a licensed contractor has failed to pay you for services provided, then there's a chance that a claim against their license bond may be appropriate.
Garrett Murai's article on the topic does a great job of breaking down license bond claims: Shaken? Stirred? A Primer on License Bond Claims in California. As discussed in that article, a contractor's failure to pay may well give rise to the right to make a claim against that contractor's bond - particularly where the nonpayment is willful and intentional, or where a contractor is refusing to pay in hopes of agreeing upon a discounted price.
Of course, other recovery options might make sense too. Options like sending invoice reminders or even payment demand letters can help a claimant to better position themselves for getting paid. Or, pursuing legal claims like breach of contract might be on the table, too. And, sending a debt to collections could be yet another option.