PAYMENT BOND CLAIMS

Construction Law in Massachusetts

Many private projects and virtually all public projects (both Massachusetts public and federal) have a payment bond posted by the general contractor to secure proper payment of material suppliers and subcontractors. (A 'payment bond' is akin to an insurance policy, which guarantees payment to material suppliers and subcontractors who have valid claims and who comply with the specific provisions of the payment bond and/or with the provisions of any statute under which the payment bond is authorized/required.)

Making claims against payment bonds offers a more secure collection effort, as very few sureties are ultimately found to bejudgment-proof (incapable of paying a judgment), which does not, unfortunately, prove to be the case as to claims against private contractors. Indeed, the unusual and complicated mechanics of the principal-surety relationship often provide for more prompt payment of claims when claims are made on bonded jobs than occurs with unbonded claims. Moreover, some times these claims can be resolved without having to file suit, provided a claimant understands how to present its claim to the surety, how to document that claim and when suit is either required or desirable.

Jonathan Sauer has experience representing at least two dozen sureties over the years with regard to issues pertaining to bid, payment, lien and performance bonds and indemnity agreements. This experience has involved handling hundreds of payment bond claims and working towards the completion of jobs under performance bonds in most of the New England states, New Jersey, Florida and Arkansas. Sally Sauer, prior to becoming an attorney, was an in-house claims representative for ten years working at several sureties in California and in Chicago. This combined experience - understanding the surety industry from the surety side, as well as from the claimant side - assists us in helping you conclude your surety bond claim or indemnity matter as quickly and inexpensively as possible.