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Is there a bond to protect a subcontractor?

TennesseeCollectionsPayment Bond

I am a subcontractor on a multifamily development that has from day one had payment problems. They are now 90+ days and owe us nearly $300,000. Our contract allows us to walk off the job at 45 days and lien at 60 days. Neither of these consequences have mattered. The job is mostly at a stand still for weeks, other subs are unable to work waiting on us and the GC is asking if they pay the past due when will we return. Obviously, if they can't won't pay when we hold the cards, there is little hope of getting our retention once we complete the job. Is there a bond or course of action to protect us from future loss? We want to finish the project (we never haven't) but not as a charity.

1 reply

Dec 1, 2020
There may be a payment bond to protect you. In Georgia, the Contractor must file a notice of commencement which references the bond. if there is no similar filing in Tennessee, you should ask the Contractor and the Owner to furnish a copy of any payment bond for the project. Once you have the bond in hand, then you must review to ensure you comply with any time requirements in the bond.
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