Our clients often ask how they can best protect their rights on a public construction project because they know they can’t file a lien. Contractors on public projects must be very careful about protecting their claim because there are very specific steps that must be followed.
Nebraska statute section 52-118 contemplates two types of situations–those in which the subcontractor or supplier has a contract with the contractor and those in which it does not. If the subcontractor has a contract with the contractor, the sub may file a claim on the bond without providing notice to the contractor. If the subcontractor does not have a contract with the contractor, the subcontractor must jump through the hoops to provide a notice to the contractor, by certified or registered mail, that he has not been paid. This notice must be provided within four months of providing services or supplies to the project. If the subcontractor does not provide notice, any claim on the bond may be waived.
Preserving your bond claim can be tricky, so make sure you jump through the right hoops to protect your claim.