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How can I recover money for material supplied to State Govt project

I supplied material for a state govt contract. Contract holder and my company had agreed to work jointly on the project. The contract holder has not paid me although has gotten paid. Can I file claim on property against state govt. How long do I have?

2 replies

Oct 29, 2019

When performing work on a publicly owned project, mechanics lien rights generally won't be available. However, subcontractors and suppliers who provide labor or materials to the project will typically be able to secure their right to payment through a payment bond claim, if one becomes necessary. Contractors must typically provide payment bonds for Maryland public projects when the job exceeds $100,000. And, while a mechanics lien claim ties directly to the project property, a payment bond claim acts as a claim against the bond provided to the contractor by a surety company (the bond is relatively similar to an insurance policy). And, if the claim is legitimate, it must be paid out by the surety who provided the bond to the contractor. More on the differences between liens and bonds, as well as additional insight on payment bond claims here: - What’s the Difference Between a Lien Claim and a Bond Claim? - How Does the Payment [Surety] Bond Claim Process Work? Requirements and Mistakes to Avoid

Timeframe for making a Maryland payment bond claim

A Maryland bond claim must be made within 90 days of last furnishing labor or materials to the project. If the project's contractor doesn't receive the payment bond claim within those 90 days, then the claimant may need to look elsewhere for protection. You can learn more about Maryland bond claims (like what must be included with the claim, how to send the claim, and who must receive it) here: Maryland Bond Claim Guide and FAQs.

A claim against project funds may also be available

A claim against the project funds may also be available under § 15-226 of the Maryland Code for State Finance and Procurement. If a sub or supplier goes unpaid for their work on a public project, that party may make a claim with the state's procurement officer for the project. Upon receiving that claim, the officer will contact the contractor to assess whether there's a dispute over what's owed. And, if the claim is legitimate, then the officer will instruct the contractor to make payment, as required. For more on a claim against project funds, the Maryland Bond Claim Guide link above has great information.

Other options for recovering payment

As a final note, keep in mind that less formal options - like sending an invoice reminder, demand letter, or a Notice of Intent - can be helpful in forcing payment, too. Not every dispute requires escalating things to a bond claim or claim on funds. Though, when necessary, those tools tend to get the job done.

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Apr 24, 2020

The 90 day notice requirement is only for those subcontractors not having a direct contract with the prime contractor. It sounds like you supplied material to the prime contractor, so you would not be bound to any notice requirement at all - you would simply need to file suit on the payment bond within one year of the agency's final acceptance of the project as a whole. In this way, Maryland's "Little Miller Act" is more generous than the federal government's payment bond statute, which requires a lawsuit to be filed strictly within one year of the last day of a subcontractor's work (as well as a 90 day notice for those subcontractors not having a direct contract with the prime contractor). So, depending on how early in the process you supplied your material (roofing, for example, would be supplied far earlier than the interior finishes), there may still be PLENTY of time to sue the bond surety and principal. I urge you to speak to a competent construction attorney as soon as possible.

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