As a construction project progresses from bidding to completion of construction, unforeseen problems may develop, including failure to perform work and failure to pay for work performed. Surety bonds are regularly used by the parties on a construction project to guarantee the various obligations for performance or payment. To ensure that bidders will execute a contract for their bid amount, owners may require bid bonds during the procurement process. To encourage timely and proper completion of construction projects, owners and general contractors may require their downstream contractors to issue performance bonds. To ensure timely and proper payment to trade contractors and suppliers, owners and general contractors may require their downstream contractors to issue payment bonds for the construction project. If a mechanic’s lien is filed on a project, the owner can demand that the lien be released through the submission of a mechanic’s lien release bond.
At The Pearce Law Group, P.C., our construction law team assists clients with issues involving surety law, including asserting bond claims against principals and sureties defending sureties on bond claims, and representing sureties in claims against owners when sureties undertake the performance of bonded contracts.