Bond claims

At Newport & Associates we routinely perfect payment bond claims and, if not paid, file suit on behalf of construction companies to recover for materials and services provided at the project. 

General Contractors who construct government projects in the State of Texas valued at over $25,000.00 are required to procure a payment bond to ensure payment of subcontractors and suppliers.  Government projects include school construction, city projects, most road construction and virtually any other government project constructed by the State of Texas or a government entity.  Payment bonds are normally issued by insurance and/or surety companies.

Subcontractors and suppliers who provide materials or services to government projects can perfect a claim against the payment bond and receive payment if they are not paid.   Depending upon whether you are a subcontractor or supplier, perfection of a payment bond claim may require that up to two notices be served on the general contractor, payment bond company and / or party who ordered the services.  The first notice must usually be mailed by certified mail no later than the fifteenth day of the second month after the work was performed or the materials were provided.  The second notice which is called a sworn statement of claim must be mailed by certified mail no later than the fifteenth day of the third month after the work was performed or the materials were provided. 

Perfection of a payment bond claim is a complicated process requiring different notices depending upon the facts of each case and should be performed by a construction attorney.  Our law firm have perfected hundreds of payment bond claims and recovered payment on behalf of clients in numerous Texas counties. The Texas Government Code also specifies that a prevailing payment bond claimant is entitled to recover attorney's fees and costs spent in pursuit of the payment bond claim.