Once you file a claim against the Surety. The Surety gives the GC a reasonable amount of time to pay the claim (no disputes). Anyone know what "reasonable amount of time" ? 30, 90 days etc... This is for Georgia.
2 replies
May 7, 2020
It's tough to know how much time a surety will give a GC to resolve their disputes before stepping in. So, unfortunately, I don't think there's a single rule of thumb to provide here. But, staying in contact with the surety can help to make sure they're taking the claim seriously and following all the necessary steps to get the claim resolved. After all, the squeaky wheel gets the grease.
What's more, applying some additional pressure by letting them know you're willing to file suit to get paid could be useful. So, sending a Notice of Intent to the surety, the GC, and anyone else involved with the dispute could push things forward when trying to get paid after filing a bond claim.
Finally, here's a resource that might be helpful: How to Get Paid – 4 Steps to Take After Filing a Bond Claim. Additionally, reaching out to one of these Georgia construction attorneys might help to clarify things - they'll likely have more hands-on experience following up with a GA bond claim.
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Helpful
May 15, 2020
In addition to the excellent answer already provided, be aware that Georgia has statutory law allowing for the claimant to assert a claim for a penalty and attorney's fees if the surety fails to pay the claim within 60 days, if the Court (or jury) determines the failure to pay was in bad faith. This includes a penalty of up to 25% of the principal amount, plus reasonable attorney's fees. So the surety must investigate the claim within this 60 day window, or risk the bad faith claim.
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