Home>Levelset Community>Legal Help>Can someone help us identify the requirement for a Bond Claim in Texas? All other resources have been exhausted and have not yielded any clear answer.

Can someone help us identify the requirement for a Bond Claim in Texas? All other resources have been exhausted and have not yielded any clear answer.

TexasBond Claims

Texas lien law is unclear regarding Bond Claims on Public Works Projects. Our last day on site was 01/14/2019. We processed a Public Monthly Notice for our final progress invoice sent in January. Additionally, we processed a Texas Written Notice of Claim on Retainage that was billed in February. After scheduling those two notices, a State Bond Claim was automatically generated by the platform and is due in 5 calendar days. The question is WHAT is this document for and WHEN is it required? All of my research and feedback from Levelset chats have yielded the answer, "Texas Law is unclear on this." Based upon our last date on site (01/14/19), the Levelset Platform is prompting me to approve the Bond Claim due no later than Monday, April 15th. I need a clear YES/NO answer if this Bond Claim is required to protect our rights, or if the 2 notices aforementioned have already protected our legal right to funds owed.

1 reply

Apr 11, 2019

This is a great question! Sometimes the notice requirements and language of the Texas bond statutes can get a little tricky. First and foremost, unlike most other state bond laws that require one claim to secure your bond rights, Texas bond claims require more than one document. Under Sec. 2253.047(c) of the TX Little Miller Act, there are two notices required. The first which should be sent no later than the 15th day of the 2nd month since the last date of furnishing of labor or materials. Then there is a second required "notice," which must be sent by the 15th day of the 3rd month since the last date of furnishing. Here is where the language trips people up. This 3rd "Notice of Claim", actually serves as the Bond Claim itself, which should be sent to both the GC and the surety. This "notice" will officially secure your bond claim rights until the up until the deadline to enforce the claim. For additional resources, you can always check out the Texas Bond Claim Overview page.

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