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what is my next step to get paid?

I have a customer that I have filed several liens on in the past. They have bonded around every single one of them so I sent a demand letter to the bonding company about 2 weeks ago. I have not contacted them yet. I figured Id give them this week and them start calling. but my question is, is if I cant get anywhere with them what is my next step to get paid? file suit? this over several different states.

1 reply

Sep 20, 2017

If you filed valid and enforceable liens, (i.e. sent the appropriate preliminary notices when required, and met all timing, form, filing, and service deadlines and requirements), having the liens "bonded off" is not a bad thing. You can read some more about it here: https://blog.zlien.com/construction-payment/dont-be-afraid-of-threats-to-bond-off-your-mechanics-lien/ and https://blog.zlien.com/construction-payment/contractors-dirty-secret-when-threatening-to-bond-off-your-mechanics-lien/

While the process is different in different states, bonding off a lien doesn't just leave you unprotected, it just means that your avenue to recovery is through the newly provided bond rather than through foreclosure on the property itself. This can actually be more efficient, and get you paid faster.

The steps to enforce your claim against the bond are different by state so, depending on the amounts due, it would probably be a good idea to talk to an attorney who can more closely examine the situation and documents. The good news is that you can enforce your claim against the bond and get paid in a very similar manner to enforcing a mechanics lien. If the customer or the surety doesn't pay your claim outright - you can file suit to enforce the claim.

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