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Bond Claim or Lien Claim

MichiganBond ClaimsMechanics LienPayment DisputesRecovery Options

I am debating on whether to file a lien claim or a bond claim on a commercial project, where I am waiting on retainer for me and my subs. The GC would rather me file a bond claim because he claims the lien claim would slow down payment considerably. Would the bond claim be sufficient? I would think the bond claim to the Hartford Insurance Company would be a sufficient security, but I do not want to be wrong.

1 reply

Jan 12, 2018
The decision whether to file a bond claim or a lien claim on a private project where a bond is present can be a tough one, and ultimately it will be up to you to decide - but consulting a local construction attorney would be helpful in coming to a conclusion. Keep in mind that mechanics lien deadlines are strict and unforgiving - if missed, a deadline will not be revived. Since a mechanics lien is the most powerful construction payment remedy, losing out on lien rights could represent losing the best bet to recover payment. Of course, this industry relies on relationships, too. If a payment bond is truly present on the project and a bond claim may be filed, this would also be a good route for recovery. I would add that if a mechanics lien is filed on the property, the GC will be able to "bond off" the lien - by doing so, they would transfer the mechanics lien claim to a bond and this process is much more secure than simply filing a bond claim without filing a mechanics lien. Of course, this could take time. I'm going to add a few links that could be helpful in coming to your own decision re: a lien or bond claim, or some other avenue for recovery: "What If I Don’t Want to File a Mechanics Lien? Here Are 5 Other Options" ; "What’s the Difference Between a Lien Claim and a Bond Claim?" ; "Bonding Off Liens: Claimants May Face Extra Requirements" ; "Payment Bonds on Private Construction Projects"
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