Public projects require a different playbook.
Karalynn and Jess break down payment bond claims for public work, including how to get the bond before payment becomes a problem, which notices to send, why denials are common, and when a lawsuit against the bond company becomes necessary.
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Key Takeaways
1. Contractors cannot file mechanics liens on public projects, so payment bonds are the legal security that protects subs and suppliers when they are not paid.
2. Request a copy of the payment bond before signing the contract or starting work, because tracking it down after a payment dispute can take time you do not have.
3. On Texas public projects, the timing and recipients of bond notices depend on your position in the contract chain, making prompt, accurate notice essential.
4. Bond companies often deny the first claim after consulting the GC, so contractors should be prepared to provide complete documentation and potentially file suit to enforce payment.
5. Private project bonds and liens bonded around by an owner require a different strategy, but they still preserve a path to recovery by shifting the dispute to the bond company.
