I have requested a copy of a bond from my general contractor and they refuse to provide me with one. Can they do that?
1 reply
Oct 22, 2019
Upon written request, a prime contractor on a Texas public works project is required to provide a copy of that payment bond under Sec. 2253.024(a)(2) of the Texas Little Miller Act. So, as long as the request for the payment bond was made in writing, then the prime contractor must provide it.
Note, though, that the penalty for a prime contractor who fails to provide this information is pretty weak. Under 2253.024(a)(e), they'll simply be liable for the reasonable and necessary cost of obtaining the requested info. So, if a contractor is truly being steadfast in their refusal to provide a copy of the bond - even though they're required to provide a copy, a claimant may need to look elsewhere so they can obtain a copy of the bond.
Another option for obtaining a copy of a project's payment bond
The contractor isn't the only one from whom bond information may be obtained. Under Sec. 2253.026 of the Texas Little Miller Act, the public agency in charge of the project must provide a copy of the bond upon written request from a subcontractor, supplier, or other beneficiary under the bond. The request must include an affidavit which states the requesting party has supplied labor or materials to the project.
Upon request, the public agency is also required to provide a copy of the contract for the work, as well as the toll-free telephone number maintained by the Texas Department of Insurance for obtaining information concerning licensed insurance companies.
What if neither party will produce a copy of the payment bond?
It's a good idea to keep all communications regarding the request for a payment bond in writing. That way, if a copy of the bond isn't obtained, the claimant can clearly show that the contractor and public entity failed to uphold their duty to produce that information.
If the payment bond information is never obtained, a claimant could potentially lose their ability to make a claim on the bond since the Texas public monthly notice requirements are pretty strict. But, if the legal dispute takes another form - like a lawsuit - having copies of the ignored requests could be helpful.