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What steps do I take after a bond claim has been denied?

We did a city job for a general contractor in October, November and December 2021 and never received payment for work that was done. Therefore, we pulled off the job December 2021.Surety and General Contractor denied my claim in January 2022 and in August 2022 for not enough information. When we ask what additional information is needed to suffice our claim we get no response from the Surety. What can we do ?

2 replies

Sep 8, 2022

If you are in Texas, there are government code notice requirements that must have been complied with to perfect your claim on the GC's payment bond. Even if you failed to perfect, you still may have a claim against the GC for breach of contract, interest and any attorney fees you incur. Sureties frequently ask for more information than is required by statute. There are some gray areas, but you either perfected the bond claim by giving the required notices or did not. Remember, sureties are in the business of earning premiums for issuing bonds, not paying claims.

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