Public construction projects can be fraught with legal nuances that can trip up even those who are most experienced in the field of construction. While defects and mechanic’s liens are certainly issues that frequently come up, in the public project context, delays and construction bonds can also become problematic.
How construction bonds work
In most instances, the public entity seeking completion of a project requires construction companies to put up a bond, meaning that the public entity will be financially protected against delays and incompletion of the project. That said, a construction bond can also protect from poor quality work. In other words, if the construction company fails to perform its work in accordance with the contractual standards, then a bond claim can be submitted so that the public entity isn’t financially harmed.
Following proper procedures
To successfully file a construction bond claim, you have to follow strict protocols as specified by statute. This includes sending written notice to the contractor within 90 days of the work’s completion and including in that written notice a description of the property, the unpaid balance, and the nature of the claim. If the bond in question provides greater protection than that allowed by statute, then the notice required is that which is specified in the bond itself.
Keep in mind, too, that there’s a short window to file a construction bond lawsuit. Generally speaking, those legal claims have to be made within six months of the work’s completion, but again you’ll want to look at the specific provisions of the bond in question to determine whether that timeline has been altered in some way.
Competently navigate your construction bond issues
On their face, construction bonds can seem relatively straightforward. But in reality, they can lead to some challenging legal issues. If you don’t properly navigate these issues, then you could end up facing significant financial losses. That’s why it may be in your best interests to discuss the particularities of your bond claim issues with an attorney who is experienced in this area of the law.