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Home>Levelset Community>Legal Help>we shipped a 6 figure boiler package with an extended warranty invoice for 11K. they paid everything except that, can we file a bond claim?

we shipped a 6 figure boiler package with an extended warranty invoice for 11K. they paid everything except that, can we file a bond claim?

ColoradoBond Claims

we are at 90 days. Boilers were delivered in Denver, Colo. DPS Schools

1 reply

Feb 4, 2019
Good question! First, in Colorado, the availability of bond claim rights for those who have performed work but gone unpaid will depend on who the prospective claimant was hired by. While those suppliers who provide materials for other suppliers will not be entitled to make a bond claim, it appears that suppliers to subcontractors may be afforded protection. Suppliers who supply the prime contractor are entitled to make bond claims. Regarding the timeframe for making a bond claim in Colorado - Colorado is a state where a claimant need not send a formal claim on the bond before they file suit to recover payment from the bond. However, there's still plenty of value in informing a surety and a prime contractor that a claim is due from the bond. For one, it will bring awareness to the fact that payment is due and owing, and for another, it could help put some pressure on a contractor (from their surety) to make payment and avoid suit. As far as when suit must be initiated - such a lawsuit must typically be filed within 6 months of the completion of the project (though, this period could be lengthened by the terms of the bond itself). Regardless, prior to making a bond claim or filing suit against a surety bond, it could be helpful to leverage the threat of a claim - even where it's not required. zlien discusses that idea in this article: Do I Need to Send a Notice of Intent Before Making a Construction Bond Claim? For more information on Colorado bond claims, this resource should be helpful: Colorado Bond Claim FAQs.
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