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City Job, we are the GC. What type of bond should the City provide to secure our payment?

Texas

City Job, we are the GC. What type of bond should the City provide to secure our payment? If we do not have lien rights, what do we need to get up front from them that may help us?

2 replies

Aug 26, 2022

If the project is owned by the government, then it is likely governed by Chapter 2253 of the Texas Government Code. Under Chapter 2253, the prime contractor, which appears to be you, has to post performance and payment bonds. The city would not post anything. If you are unhappy with payment, then you would have to follow the disputes process in your contract.

You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to relief from the government is set out in Chapter 2253, and you really need to make sure that if you make a claim, you have properly and appropriately done so.

Good luck.

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Aug 29, 2022

City does not bond the job the contactor does by filing with the City a payment and performance bond.

If contract is approved by the city council (minutes and authority granted from public hearing or in a bond issue) all you can do if they do not pay is sue the city for payment under an exception to the sovereign immunity law

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