Home>Levelset Community>Legal Help>If we are a supplier that is contracted directly with the Owner of a public job and hold a payment bond on the job does that payment bond cover us in the event of non-payment?

If we are a supplier that is contracted directly with the Owner of a public job and hold a payment bond on the job does that payment bond cover us in the event of non-payment?

CaliforniaBond Claims

We recently acquired a company that is the supplier but also holds the contract with the property owner (ex: city, state, school district, etc) and hires the contractor to install the product the owner is purchase direct from us. The install is a part of our contract with the owner. If we have a payment bond on the job does that job cover us in the event of non-payment from the owner?

1 reply

Nov 20, 2017

The phrasing of "if we have a payment bond on the job" is a little confusing, but generally speaking the remedy for a party who contracts directly with the property owner on a public job is a lawsuit against the non-paying party (usually for breach of contract). The bond will define the beneficiaries of the bond, but it is generally only required to benefit the parties without a direct contract with the property owner who would otherwise be left without a remedy.

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