Can a supplier file a Bond on a city's project in New Jersey if there is no recorded of a bond being filed with the general contractor or costumer?
1 reply
May 22, 2020
If the project isn't bonded, then a payment bond claim wouldn't be effective. After all, that means there's no bond to make a claim against.
If the job isn't bonded, though - a claim against the contract funds might be available. That could lead to payment. A lien on funds will freeze project funds and force the higher-tiered parties to make payment before carrying forward.
Regardless of bond claims or claims on funds - keep in mind that traditional legal claims could still be made - like breach of contract, prompt payment claims, etc. Plus, merely threatening those claims with a payment demand letter could lead to payment, too.
For more discussion on New Jersey bond claims and claims on funds: New Jersey Bond Claim and Lien on Fund FAQs.