Bond/Surety Law & Litigation
The two most common types of bonds in the construction industry are payment and performance bonds. Payment bonds are issued on construction projects to guaranty that subcontractors and material suppliers can get paid if they are unpaid by the general contractor or subcontractor above them in the chain. On a project that has a payment bond issued, the subcontractor or supplier cannot file a lien against the owner’s property in the event of nonpayment, but must pursue its remedies against the bond. To ensure payment from the surety who issued the payment bond, one must follow strict notice requirements to preserve one’s claim. We at Fisher, Butts, Sechrest & Warner, PA can assist you with this process whether you are making a payment bond claim or defending one. General guidelines of the process can be found in the “Articles” section of our website.
Performance bonds are issued on construction projects to protect an owner on a construction project. If an owner believes that their contractor is not performing its contract adequately, the performance bond is there to protect the owner. The surety on a performance bond may be required to hire a replacement contractor to finish your project, or to correct defects that may be discovered on a completed project. Strict time deadlines exist on the ability to bring such a claim, so you are encouraged to contact us to assist you with your claim.
We at Fisher, Butts, Sechrest & Warner have also represented sureties who have paid out money on construction bonds and wish to pursue the responsible parties for subrogation, and can often do so on a contingency fee basis.