# going after a GC's bond



## AintNoFun (Mar 13, 2006)

We have a project where the GC was paid and hasn't paid any of the subs. I called the owner of the project and they told me to go after the bond like all the other subs. so they send me the bonding infortmation of the GC. i call the bonding company and they said send something in writing in regards to lack of payment.. does anyone have any letters theyve sent out in previous situations like this? thanks


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## Supahflid (Mar 22, 2011)

AintNoFun said:


> We have a project where the GC was paid and hasn't paid any of the subs. I called the owner of the project and they told me to go after the bond like all the other subs. so they send me the bonding infortmation of the GC. i call the bonding company and they said send something in writing in regards to lack of payment.. does anyone have any letters theyve sent out in previous situations like this? thanks


Have you sent notice to the GC asking for their bond information because you intend to file a claim? Sometimes that helps spur them in to action.

Really, you just need to get notice to them in writing that you intend to file a claim against the GC; doesn't have to be anything special. Include the job name, the name of the Contractor, the amount you are owed and for how long. Once you have sent the letter, your best bet is to get as close to whomever is handling the account is and keep in constant contact with that person.


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## mudpad (Dec 26, 2008)

Isn't that a situation where you would file a lien against the property with the owner? That would get the owner motivated to help you.


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## Supahflid (Mar 22, 2011)

mudpad said:


> Isn't that a situation where you would file a lien against the property with the owner? That would get the owner motivated to help you.


Yes, you are right and if he is able to do so, I would suggest that. In my state, we have no such right and even after having spent the last twenty or so years fighting for a lien law, our local ASA chapter has been unable to get one passed. I forget that some of you have the ability to file liens!!!


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## AintNoFun (Mar 13, 2006)

the gc hasn't paid any of there subs.. of course i notified them, they apparently have no intention to pay anyone so they dont care.. ive gone after bonds before but the owner usually has helped facilitate it and ive been kept out of the loop...




Supahflid said:


> Have you sent notice to the GC asking for their bond information because you intend to file a claim? Sometimes that helps spur them in to action.
> 
> Really, you just need to get notice to them in writing that you intend to file a claim against the GC; doesn't have to be anything special. Include the job name, the name of the Contractor, the amount you are owed and for how long. Once you have sent the letter, your best bet is to get as close to whomever is handling the account is and keep in constant contact with that person.



im out of my lien window so im screwed with that, but since its a public building im pretty sure they wouldn't care anyway because i doubt they will sell it in my lifetime..



mudpad said:


> Isn't that a situation where you would file a lien against the property with the owner? That would get the owner motivated to help you.


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## skyhook (Mar 17, 2007)

_The *Bond* money is there for people who win in *court.* 

Until you have a* judgement*, the *Bond Company* owes you nothing,
not even a courtesy letter.​_


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## Kent Whitten (Mar 24, 2006)

It doesn't work that way. What or whoever owns the property is responsible for payment to you. You put work into improvements of said property. 

So if it gets to this point, it is...you sue the property owner, the property owner sues the GC.

Unless there is a different state law, which I don't think there would be.


You let your lien lapse too long. I went through this once. It's a tough lesson to learn and it's gut wrenching I hate to say. Any time there is someone getting taken, or lawyers are brought in, it's just not fun.

I would suggest to lien the property and right away get a lawyer to start foreclosing on the lien. The longer you wait, the more money it is going to cost you.


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## detroit687 (Sep 4, 2008)

Here you need to send a Notice to owner, or notice of commencement or furnishing.
Sworn statement
claim of lien , within 90 after the last day goods and services are provided
proof of service, documents served within 15 days
Im sure staples has templates of these forms
but if you miss your window to file your paperwork I have no idea what you would do.


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## Supahflid (Mar 22, 2011)

It has been my experience that the bonding company will pay you or make the GC pay you if you are legitimately owed the money. If this is public work, it ought not take too many letters to get somebody's ire up about this. You should start right now sending out letters. Oh, and I would talk to an attorney too. I would bet that none of us that have responded hold anything resembling a law license.

Edit: Also, in my state, there is a thing called promissory estoppel that once in place means that no one can get paid until your issue is dealt with. If the GC isn't paying anyone, it may not be useful to use promissory estoppel. Let us know what happens.


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## jdw4748 (Mar 2, 2011)

AintNoFun what state was the job in. You might be able to get the contractor to pay if you threaten get whichever state agency certifies contractors for state work involved. In Mass its DCAM (Division of Capitol Asset Managment). They cannot actually do anything for you but no contractor wants DCAM nosing around if they can help it. The other thing you may try is playing "uninformed innocent" and start touching base with your states attorney general, call them and let them know what is happening. Tell them that because its a state funded project and that because its state property you arent sure what you are supposed to do and didn't want to get a lawyer involved unless absolutely nessecary. It might get them to do some of the heavy lifting for you. Contractor gets a call from the Attorney Generals Office with questions may loosen your money. Otherwise I would find a lawyer. Chances are you are going to have a battle ahead.


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## pcplumber (Oct 12, 2008)

*Most likely, you cannot win this case.*

In most states you have about 20 days from the time you commence a job to give the reputed owner the Notice To Owner that tells the owner that you are working on his property and he will be obligated to pay you if the general does not. So, you are too late if you did not do this. Without the Notice To Owner, you are going to have a hard time winning in court because the owner will say he did not know you worked on his property.

To get money from the general contractor's bond you will still need to take the general and the owner to court, win in court, and maybe the bonding company will pay you, but there are two different types of bonds and the type of bond you are talking about probably doesn't have enough money to pay more than a few thousand dollars divided between all subs and attorney fees. When you want to make sure you are paid by a bonding company you need to purchase a bond specific for the job you want it to cover.

FILE A STOP WORK NOTICE AT THE BANK - If the job is still in progress, if there is financing for this project, and if there are still funds in an account for this project, you need to send the bank a Stop Work Notice. This orders the bank to stop paying money to everyone involved on this project and nobody will get paid a penny until your money issue is resolved. But, pay a lawyer $50 for advice on how to file the Stop Work Notice because I never did one.


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