Ever get that sinking feeling on a public project that you might not get paid? The good news is that in Nebraska, general contractors working on a project in excess of $15,000, must file a bond on the project. This blog will address how to make a proper claim on the bond. The process for making a bond claim is found in section 52-118.01 Neb.Rev.Stat. The process and time frame [...]
How well do you communicate with your bonding company when you receive notice of a claim? A recent case out of Indiana highlights the problems that can occur if you do not investigate the claims and timely report back to the bonding company. In this case, the bonding company was contacted by various subcontractors demanding payment. The bonding company called the contractor to investigate the claim. It took several weeks [...]
For those of you working in Iowa, beware of the time limits by which you must make bond claims. On public works projects in Iowa, you have a very limited window to make your claim and the process can get even more complicated if the contractor abandons the project. Iowa’s statute on public works bonds provides that general contractors must pay subcontractors within seven days of payment for the subcontractor’s [...]
