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Claim on bond for retainage

We are a subcontractor on a Public Works project ( Waste Water Treatment Plant), the project was supposed to be complted December 2017 but is still ongoing. we have been paid to date on everything that is owed to us except for retainage, we are 89% complete with our scope of work. Delays have nothing to do with any of our work. My question is should we file a claim of some kind on the bond for retainage?

2 replies

May 16, 2020

Your challenge is that retainage is probably not due at present because you haven't completed your work. I realize that is unfair due to the delays to your work. You could certainly request a partial release of retainage under the circumstances. You should also investigate whether you have a delay claim that can be made due to increased costs resulting from the delays to your work. Once you complete the work, then yes, you will have a bond claim for the retainage. I encourage you to consult with counsel so that all facts can be analyzed, as well as the terms of your subcontract.

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May 19, 2020

I would file a bond claim for retainage, to make sure you are paid the money you are owed once the job is complete. You will also need to send a written letter to the GC stating that you do not want the pay when paid clause enforced against you any longer since you are not the reason for any delayed payment from the owner. It would be best to have an attorney review your contract to see if there are any other ways you could collect sooner, or best advise on how to negotiate with the GC at this time. Thanks, Karalynn Cromeens Managing Partner 8431 Katy Freeway Houston, TX 77024 Tel: (713) 715-7334 www.TheCromeensLawFirm.com Privileged Attorney-Client Communication and/or Attorney Work Product: The above message and attachments, if any, are confidential and may be protected by the attorney/client privilege and/or attorney work product. The unauthorized disclosure, use, dissemination or copying of this e-mail, or any information it contains, by anyone other than the intended recipient, is prohibited. If you are not the named recipient, or have otherwise received this communication in error, delete it immediately and notify the sender at the office number listed above or by return email.

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