Can I avoid a bond claim?

If you have a surety bond for a project, then you want to avoid having a claim against that bond because it can impact your ability to get one in the future, along with causing a negative image of your company.

Construction Business Owner explains that you want to try to avoid a claim first through negotiating with your client to reach a deal. However, if that does not work and the client makes a claim, then you need to take steps to protect your business and yourself, since you may have personal liability in some situations.

Watch the timeline

Bond claims have specific time limits for filing a claim. You also have a right to receive a notice within a certain time. Once you become aware of a bond claim, make sure everything occurs according to the timeline. You may be able to invalidate a claim due to time limit issues.

Know your contract

You want to read through your contract again and compare it to the claim your client is making. If you feel the claim is outside the scope of the contract or contradicts your agreement, then you may be able to invalidate the claim because your surety company will follow this document when judging claims.

Keep good documentation

You want to document everything and keep this information in a safe and secure place. Make sure that you keep all items related to the project, including emails and text messages. You want to be able to provide evidence to back up your defense if you need to argue against a claim a client makes.

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