State/Local contract was terminated for No Cause. How long does the "Owner" have to return our Performance and Payment bond?
1 reply
Mar 2, 2020
First, if your contract was terminated and you've secured payment and performance bonds on the job, it might be a good idea to let your surety know as soon as the termination occurs. They'll want to know that information, and it's possible that the termination may end up limiting the potential for claims against the bond, to some degree.
Additionally, it's a good idea to look at the contract with the public entity to see if there's any direction about the returning of the bonds. Unfortunately, though, I don't think the Nevada Little Miller Act provides any statutory guidance about the returning of payment and performance bonds following a termination. So, I'm not sure that there's a guideline to base things off of here.
However, it may be helpful to consult with a local Nevada construction attorney to see if they've got additional insight here. Further, it may also be helpful to have them review the contract to ensure that all contract terms and required termination procedures were followed.