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If we decide not to file NOI but later file a Bond Claim, is it a problem in not filing NOI prior to filing Bond claim?

Delaware

We provide HVAC products/services (heating & cooling coils, chillers, air purification systems). We're sub-subcontractor to mechanical subcontractor. Public entity is City of Rehoboth (DE). Job is Waste Water Treatment Plant.

7 replies

Jan 11, 2021

Delaware generally doesn't require any sort of notice before pursuing a payment bond claim. Meaning, a Notice of Intent is voluntary and not legally necessary in order to pursue a payment bond claim. Still, the document could be useful. More on that idea here: Do I Need to Send a Notice of Intent Before Making a Construction Bond Claim?

It's worth noting, though, that Delaware's Little Miller Act doesn't appear to be as expansive as some other states. And, it's possible that those who don't directly contract with the project's GC might not be entitled to claims against the bond. Unless the bond or agreement with the surety explicitly provides for protection of indirect subs and suppliers, bond claim rights might not be available. 

That rule is discussed in detail here: Delaware Supreme Court Confirms That Sureties May Limit Bond Claimants | Cohen Seglias.

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Jan 11, 2021

This is actually the only job we had in DE & today, this customer finally paid our invoice. Since our business is in the DC area, can we get the same question answered for DC, MD & VA. Thanks.

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Jan 11, 2021

That's great to hear! I'm glad you didn't have to pursue a formal claim to get paid.

Washington DC doesn't require that a Notice of Intent be sent prior to making a payment bond claim. To be sure, preliminary notices aren't required prior to making Washington DC bond claims, either.

For more info on DC bond claims: Washington DC Bond Claim Guide and FAQs.

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Jan 12, 2021

What about Maryland and Virginia since those are our primary business areas? Thanks, Tom Lingle, Critical Systems, LLC, Rockville MD

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Jan 12, 2021

Neither Maryland nor Virginia requires a Notice of Intent to Lien prior to making a payment bond claim. For more information on those states bond claim laws, the links below will be helpful.

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Jan 13, 2021

Many thanks, Matt.

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Feb 1, 2021

Thanks for your response. Somehow I forgot to reply and just saw that today. Regards, Tom Lingle

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