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Legal Briefs

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When and how to make a Bond Claim

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“Bond claims” are a mechanism for a contractor to secure payment on both public and some private jobs. The terms of the bond, itself, are very important to read carefully (and early) to ensure that you are timely and properly making your bond claim.

A Contractor is required to serve a “bond claim” on a public project in a timely fashion if the Contractor does not have a contract with the Principal on the bond. Palecek & Palecek has experience in the applicable “bond claim” laws with respect to making a “bond claim” and the Contractor’s rights to sue on a bond.

Keep in mind that under Arizona’s “Little Miller Act,” a Contractor who has a contract with the Principal on the bond is not typically required to make a “90 day bond claim” before suing upon the bond. The Principal on the bond is typically the general contractor. So if one has a contract with the general contractor and that general contractor is the Principal on a “Little Miller Act” bond, a “90 bond claim” is not necessarily a prerequisite. Palecek & Palecek always advises to serve a “bond claim;” however, if you have not done so, you may still have rights.

One must typically sue upon a claim within one year from the date you last worked on or supplied equipment / services to the project. Again, consult legal counsel for specifics.

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