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How much to ask for on Bond Claim?

California

The contractor we work for has not paid us on 2 invoices totaling $75,739.60. They are over 90 days old. They also owe $9,579.81 but it was due 12/1/20. We also have retention which we have not billed for. When filing my Bond Claim, do I only use the $75,739.60 or can I file for the full amount of the contract? Also, this contractor owes us around $250,000.00 on other projects..... Thank you ever so much! We are based in Communist California. Karen

6 replies

Feb 4, 2021

Hi Karen! You are funny I hope the other $250K they owe you is just all pending retention!

When you say bond claim, are you referring to a payment bond that was procured by the direct contractor/your customer for this particular project? Is this a public or private project? Are you done with your work on the project? 

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Feb 4, 2021
Hi and thank you for answering so quickly! The work was just completed. I did some digging and it's a private project so that means I can't file a Bond Claim for the big bucks!! I am suitably bummed. Do I file a Mechanics Lien then and what about the amounts?
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Feb 4, 2021

Unfortunately, I can't help you out with any specific guidance with a particular project or this issue, but perhaps another attorney will be able to!  

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Feb 4, 2021
So I need to ask this question to another attorney? Can you not answer the question about the amount I should place on the lien? Am I entitled to put all that they owe on this project on the lien or wait until it's past due? Is that a hard question?
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Feb 4, 2021
Hi Karen, The lien and bond claim should be for the reasonable value of your work, or the sum due under your contract, whichever is less. (Presumably the contract balance due is the reasonable value of your work.) To answer your question, before your deadline to record a lien, record the lien for the full amount due and owing, and make a claim on the payment bond for the same amount. If you would like to talk, feel free to call any time. Thanks, Andrew 949 954 6666 x101
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Feb 9, 2021
You can include all of the money you are owed on the project in your bond claim.  The bonding company will ask you to fill out a proof of claim form where you can show a breakdown of your claim.  Of course, you can’t include the money you’re owed on the other project.  Just the project that is bonded.
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