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How do I protect myself on a Public works project?

I began a state/county project on March 2, 2020. The GC has changed the scope of work several times and I am beginning to experience payment problems. I want to make sure I am doing everything possible to protect myself. I sent a Notice of Public Subcontract to the GC, but is there anything else I can do to ensure I am protected? What is my next step and when can I send a Bond Claim?

1 reply

May 19, 2020

North Carolina subcontractors must send a Notice of Public Subcontract to best preserve their payment rights on public jobs. But, after sending that notice, there aren't many "official" notices to send to help with payment. Still, there are tools available for speeding up payments. And, if necessary, a payment bond claim could be made.

Tools for speeding up payments on public projects

For one, sending a simple (but formal) invoice reminder might be a good first step. Invoice reminders serve as official notice that payment is overdue and must be made. And, they provide an opportunity for a customer to make payment without the matter getting hostile. If a payment dispute is on hand, then threatening to make a bond claim could be useful. Sending a Notice of Intent to make a claim on the bond will show the customer you're willing to look to the payment bond if you need to. More on that here: Do I Need to Send a Notice of Intent Before Making a Construction Bond Claim? Finally, sending a payment demand letter will show your customer you mean business. A demand letter will generally include specific legal threats and put a deadline on when payment must be made. It let's the customer you're serious about getting paid and ready to do what it takes to make sure that happens.

Making a payment bond claim in North Carolina

Obviously, reminders, threats, and demands won't always lead to payment. So, filing a payment bond claim may become necessary. The deadline for filing a NC bond claim is 120 days after last furnishing labor or materials to the project, though - so it's often useful to try and negotiate payment if there's plenty of time on the clock. If a payment bond claim does become necessary, then these resources will be very useful: - North Carolina Bond Claim Guide and FAQs - Payment Bond Claims: How to get paid by a surety bond in construction - How to Make a Payment Bond Claim (Video)

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