What a payment bond claim is and when you need one
A payment bond is a may provide that a contractor will pay workers and suppliers for a construction project. When a contractor fails to pay you for work or materials you provided, you can file a claim against that bond to recover what you're owed. The bond is held by a surety company — a third party that guarantees the contractor's payment obligations.
You need a payment bond claim when you've done work or delivered materials on a construction project and the contractor hasn't paid you. This applies whether you're a subcontractor, a material supplier, a laborer, or a professional service provider. The bond exists specifically to protect you if the contractor runs out of money or disappears.
Payment bonds are required on most public construction projects (government-funded work) and many private projects above a certain dollar amount. The requirements vary by state and by the project's funding source. If you're unsure whether a bond exists for your project, ask the general contractor or the project owner directly.
Key Takeaways
- Payment bond claims must be filed within a important date set by state law, usually between 30 and 90 days after your last work or delivery date.
- You need to send written notice to the contractor, the surety company, and sometimes the project owner, depending on your state's rules.
- Your claim should include documentation of the work performed or materials delivered, the amount owed, and proof that you've demanded payment from the contractor.
- The surety company investigates your claim and decides whether to pay it, deny it, or settle for a reduced amount.
- If your claim is denied, you may be able to file a lawsuit against the bond, but you must act quickly because court important date are strict.
learn about a payment bond exists for your project
Before you file a claim, confirm that a payment bond is actually in place. On public projects, the bond information is usually public record. Contact the project owner's office, the general contractor's office, or the surety company directly and ask for the bond number and the surety company's name and contact details.
On private projects, the bond may not be required, but ask anyway. The general contractor or project owner can tell you whether one was purchased. If no bond exists and the contractor won't pay, you'll need to pursue other collection methods — a payment bond claim won't be an option.
Write down the bond number, the surety company's full name, and the surety's address and phone number. You'll need all of this to file your claim.
Gather documentation before you file
The surety company will ask for proof that you performed work or delivered materials, and proof that the contractor owes you money. Collect these documents before you submit your claim:
- A signed contract or purchase order showing the work or materials you agreed to provide.
- Invoices or statements showing the amount owed and the date of each invoice.
- Proof of delivery or completion — delivery receipts, photos, inspection reports, or signed lien waivers from the contractor acknowledging receipt.
- Proof that you demanded payment from the contractor — emails, letters, text messages, or a record of phone calls asking for payment.
- Proof that the contractor did not pay — bank statements showing no payment was received, or a written statement from the contractor refusing to pay.
- Your company's name, address, phone number, and the name of the person filing the claim.
If you don't have all of these documents, gather what you can. The surety company may request additional information after you file, and you can provide it then.
Meet the important date for filing your claim
Payment bond claims have strict important date. In most states, you must file your claim within 30 to 90 days after the last date you performed work or delivered materials. Some states allow longer periods — up to one year in a few jurisdictions — but the important date varies by state and sometimes by the type of project.
Do not wait. If you miss the important date, your claim will be denied and you'll lose the right to recover money from the bond. If you're unsure of the important date in your state, contact the surety company and ask. They are required to tell you.
Mark the important date on a calendar and file your claim well before it expires. Filing early also shows the surety company that you're serious and organized, which can help your case.
Send your claim to the right parties in the right way
You must send written notice of your claim to the contractor and the surety company. Some states also require you to notify the project owner. Send your notice by a method that creates a record — certified mail with return receipt, email with read receipt, or hand delivery with a signed acknowledgment. Do not rely on regular mail or phone calls.
Your notice should include your name and contact information, the contractor's name, the project name and location, the bond number, the amount you're claiming, a description of the work or materials you provided, the dates of your work or delivery, and a statement that the contractor has not paid you. Attach copies (not originals) of your supporting documents.
Send the notice to the surety company's claims department. The surety company's contact information should be on the bond document or available from the general contractor. Also send a copy to the contractor at their business address, again by certified mail or email with proof of receipt.
Understand what happens after you file
After you file your claim, the surety company has a set period — usually 30 to 60 days — to investigate. They will contact you, the contractor, and sometimes the project owner to gather information. They may ask for additional documents or clarification about your work.
The surety company will then decide to pay your claim in full, pay part of it, or deny it. If they pay, the check usually arrives within 30 to 90 days. If they deny your claim, they must provide a written explanation of why.
Common reasons for denial include: you missed the filing important date, you don't have a contract with the contractor (you were hired by a subcontractor instead), the work was defective or incomplete, or the bond has already paid out its maximum amount to other claimants. If your claim is denied and you believe the decision is wrong, you can file a lawsuit against the bond, but you must do so quickly — the important date is usually one year from the date of denial.
What to do if your claim is denied
If the surety company denies your claim, you have options. First, ask the surety company in writing to reconsider, providing any new information or documents that support your claim. Sometimes a denial is based on incomplete information, and new evidence can change the outcome.
If reconsideration doesn't work, you can file a lawsuit against the surety company in your state's court system. However, you must file within one year of the denial date, and you'll need an attorney. The lawsuit is expensive and time-consuming, so consider whether the amount owed justifies the cost.
You may also have other collection options outside the bond system — a mechanic's lien (if you're a supplier or laborer), a lawsuit against the contractor directly, or a complaint to your state's licensing board if the contractor is licensed. An attorney in your state can advise you on which options make sense for your situation.
Frequently Asked Questions
Do I need a lawyer to file a payment bond claim?
No, you can file a claim yourself. The surety company will provide a claim form and instructions. However, if your claim is denied and you want to pursue a lawsuit, you'll need a lawyer. For large amounts, consulting an attorney before you file may be worth the cost.
What if the contractor says they already paid the surety company?
The surety company will investigate this claim. Provide your documentation showing you were never paid. If the contractor paid the surety but didn't pay you, that's between them and the surety — your claim against the bond is still valid.
Can I file a claim if I was hired by a subcontractor, not the general contractor?
Yes, but the rules vary by state. In some states, you can claim against the bond even if you weren't hired directly by the general contractor. In others, you can only claim if you have a direct contract with the general contractor. Ask the surety company about your state's rules before you file.
How much will the surety company pay if multiple people file claims?
The bond has a maximum amount it will pay out. If claims exceed that amount, the surety company distributes the money according to your state's priority rules — usually in the order claims were filed, or with certain claimants (like laborers) prioritized over others. The surety company will explain how the money will be divided.
What if I file a claim but the contractor pays me before the surety decides?
Notify the surety company when ready in writing that you've been paid and withdraw your claim. If you don't withdraw and the surety pays anyway, you may be required to return the money.