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I'm not sure who to send notice to to file a claim against a construction bond.

We are a wholesaler for HVAC equipment. We supplied materials to a local contractor who installed these materials at a charter school in Indiana. Charter schools are considered public schools in IN. The school secured a loan thru a local bank, and that loan is backed by 3-4 individuals in the community. Would I file the claim against the local bank or against the community individuals backing the loan (the bank has not been forthcoming with the names of these individuals)? Also, what is the difference between a Title 4 project and a Title 5 project? I'm not sure if it makes a difference in my case?

1 reply

Oct 27, 2017

There are 4 different sections of Indiana law related to making bond claims against certain types of public projects, each with different requirements. There are: 1) local and school projects; 2) most state projects other than universities; 3) university projects, and certain other state projects; 4) highway / transportation projects.

The parties required to receive the notice of the claim against the bond depend on the particular project type. For local and school projects the claim notice must be filed the board, officer, or clerk of the contracting public entity within 60 days of completion of the labor or service, or within 60 days after the last item of material was furnished. It's also generally beneficial to give notice of the claim to the GC and to the surety. The lender for the project is not necessarily the same as the surety - so the bank and community members are likely not the surety through which the GC furnished the payment bond, if a bond was required.

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