Bond Claim
noun
A claim against the surety bond by the bond's beneficiary. Typically used by sub-tier parties making a claim against the GC's payment bond. Generally, public projects are not eligible for mechanics liens. Surety bonds provide similar protections on local, state, and federal projects.
A bond claim is most common on public projects, on which mechanics liens are not available. Unpaid contractors and suppliers on local, state, and federal projects will generally be required to make a bond claim in order to secure payment.
Words related to “Bond Claim”