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Multiple State-Owned Projects?

We have projects that contain multiple job sites at times. Now I know if there are multiple job sites that means you need to track separately because you have to send a notice for each site address to preserve lien rights. For instance if we had 1 project and under it 5 jobs that had different job side addresses then, each job site would need to be sent separate notices, right? Now what if one of these projects that have multiple job sites are state owned so there is a payment bond. That would mean we could still send notices at project level to the surety company instead of having to handle at job level for the individual site? Right or wrong?

1 reply

Oct 24, 2018

That’s an interesting question. First, as you’d mentioned, when work will span multiple separate properties, sending multiple notices is typically appropriate. Ultimately, claims become necessary, wholly separate properties likely would not be included in the same claim. When separate claims would ultimately be necessary, separate notices should also be sent. Regarding a public project with multiple job sites - it's important to be sure that there aren't multiple bonds. It's possible that a public entity engaged in one overall contract for the performance of work at multiple sites (and that only one bond is present). However, if multiple contracts or multiple bonds are present, a claim against each bond for work at each site may be necessary. In a situation where only one bond is present for work at multiple sites, it may be a good idea to send notice for work done at each site. While that might not necessarily be required, providing separate notices would likely be a safer way to proceed than assuming one notice would cover all sites. Sending additional notice to cover all bases might be tedious, but that effort would pale in comparison to the negative effect of lost rights. Further, should a claim become necessary, it's unclear whether one claim would be sufficient, or whether multiple claims would be necessary. On one hand, if only one contract is signed for the work and only one bond is present, one claim could be sufficient. On the other hand, having one bond for multiple sites is abnormal, and it might be a good idea to designate each claim to the site where the work was performed giving rise to the claim. Finally, it's worth noting that when a sub or supplier is working on a public project, that sub or supplier is entitled to a copy of the payment bond issued by the contractor for the project. Upon a written request for the project's bond information (and often - such a request is included with a TX public notice), the contractor is required to provide a copy of any and all payment and performance bonds associated with the project. Requesting this information from the prime contractor in writing pursuant to Sec. 2253.024 of the Texas Government Code and/or reiterating that the contractor is required to provide a copy of the bond(s) should go a long way toward clarifying what bond(s) might be available to a claimant.

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