what can I do to get paid from a bond

4 weeks ago

Hi I’m sub contractor that did a state job for a general contractor and have not received full payment. I sent an invoice for the job back in November 2018 and they said that payment was delayed by the state because the paper work was not approved (general contractor fault)
I recently found out that they got the payment in January of 2020 and was wondering if I could still get paid from the bond?

Senior Legal Associate Levelset
139 reviews

The deadline for making a payment bond claim on a Hawaii public project is 90 days from the last date when the claimant furnished labor or materials to the project. So, if you haven’t provided work on the project in quite some time, then there’s a strong chance the deadline to file a payment bond claim has passed.

Recovery options outside of the Hawaii payment bond claim process

If payment hasn’t been made in line with your contract, it’s possible that a breach of contract claim might be appropriate. Further, Hawaii is home to prompt payment laws that may come into play. On Hawaii public projects, prime contractors must pay their subs within 10 days from when the contractor receives payment, themselves. And, failure to abide by that timeframe will result in interest penalties. So, a claim under the Hawaii prompt payment laws could be on the table, too, and lead to additional damages. Naturally, other options outside of the legal process could be on the table too – like sending the debt to collections.

Before resorting to adversarial recovery methods, though, it might be helpful to try and recover payment a bit more gently. For one, sending something as simple as a payment reminder could do the trick. A payment reminder is just as it sounds – it reminds the recipient that payment is due and owing and it encourages them to make payment. Or, escalating things a step further with a document like a payment demand letter could do the trick, too. A demand letter will generally put a hard deadline on when payment must be made, and it will typically contain legal threats that will be undertaken if payment isn’t made.

Of course, to determine what options make the most sense for your specific situation, it’d be wise to consult a local Hawaii construction attorney. They’ll be able to review your situation and project documents, then provide advice on how best to move forward.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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