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Do I file lien or bond claim and who would be the surety?

We are the material supplier. We contracted with the sub-contractor. Job is a charter school in Indiana. The school has a loan thru a local bank, and that bank represents 3-4 of the investors (these individuals are unknown to me). The school is also trying to get a loan from IFF-Detroit (provides financing for non-profits). I need to know who the surety on this job would be, and whether or not to proceed to secure our lien rights or to file a bond claim. I have, literally, only a few days left before my time to do something expires, so I need an answer quickly. Thank you for your help.

1 reply

Dec 7, 2017

If the time is running out to make a claim, it may be time to bring in help to get your claim filed. Determining whether a project is public or private can be difficult when work was done for a charter school. Generally, charter schools are often considered public projects - but ultimately, it may come down to whether the controlling entity for the school is a public entity or a private one. If a bond claim is in order, as ridiculous as it may seem, the surety's information might not actually be required. For Title 4 state projects (those state public works projects administered by the Indiana Department of Administration), the claim must be delivered to the board, officer, or clerk of the contracting public entity, and the surety - so Title 4 claims will need that information. Plus, it must contain a statement informing the public works division that the surety was notified. However, for Title 5 state projects (those public works that are not Title 4 or transportation projects) the claim must only be delivered to the board, commission, trustee, officer, authorized clerk, or agent of the state or contracting commission - not the surety. Also, no statement that the surety was notified must be included. As mentioned at the beginning of this answer, if the time to act is rapidly approaching and you're up against the ropes, it may be a good idea to bring in help before it's too late - consulting a local construction attorney may be your best bet at this stage. In any event, reaching out to the party who hired you or to the GC is a common way to seek out the surety, though reaching out to the hiring entity would likely be more fruitful.

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