You file a payment bond claim when a contractor or subcontractor has not paid you for work or materials you provided on a construction project, and you want to recover that money from the bond instead of suing the contractor directly.
A payment bond is a may provide that sits behind a construction project. The contractor buys it to promise that everyone who works on the job or supplies materials will get paid. If they do not, you can make a claim against the bond rather than chase the contractor through court. The bond company becomes responsible for paying you what you are owed.
The timing of your claim matters enormously. Most payment bonds have strict important date — often 90 days from the last day you worked or delivered materials — and missing that important date means you lose the right to claim. You also need to follow specific steps in a specific order, and those steps vary depending on whether the project was public (government-funded) or private.
Key Takeaways
- File a payment bond claim within 90 days of your last day of work or material delivery, because missing this important date usually bars you from recovery.
- Public construction projects (schools, roads, government buildings) have different claim rules than private projects, and you must follow the rules for your project type.
- You must send written notice to the contractor, the project owner, and the bond company before you can file a formal claim, and this notice must arrive within the important date.
- Gather documentation of what you did or supplied, when you did it, what you were promised, and proof that payment did not arrive.
- If the bond amount is less than what you are owed, you may still be able to pursue the contractor for the difference, but the bond claim comes first.
The difference between public and private project claims
Public projects — schools, highways, municipal buildings, and other government-funded work — are governed by federal and state law. On federal projects, the Miller Act requires a payment bond, and your claim must follow strict federal rules. On state and local public projects, your state's version of the Miller Act (sometimes called a "Little Miller Act") sets the rules instead. These laws are rigid: you must give notice within a specific window, usually 90 days, and you must name specific parties.
Private projects have no federal requirement for a payment bond at all. Whether a bond exists depends on the contract between the owner and contractor. If a bond does exist on a private project, the claim rules are set by the bond document itself, not by law. This means you need to read the actual bond to know your important date and procedures. Some private bonds follow Miller Act rules voluntarily; others do not.
Before you file any claim, find out whether your project is public or private. Ask the general contractor, the project owner, or the architect. If it is public, ask which level — federal, state, or local — because that determines which law applies.
When the 90-day clock starts and stops
The important date clock almost always starts on the last day you performed work or delivered materials to the project. If you were a carpenter, it starts the day you left the site for the last time. If you supplied materials, it starts the day the last shipment arrived. If you provided labor over several months, the clock starts when that work ended, not when the project was completed.
You have 90 days from that date to send written notice to the contractor, owner, and bond company. Sending the notice before the important date is what stops you from losing your right to claim. Filing a formal claim later is allowed, but the notice must arrive within 90 days. If you miss the 90-day window, the bond company can refuse your claim, and you will have no recovery from the bond.
Some bonds have shorter important date — 60 days or even 45 days — so check the bond document if you can find it. If you cannot find it, assume 90 days and send notice well before that date. Sending notice early costs nothing and protects you.
What you must include in your notice
Your notice does not need to be fancy or use legal language. It should be a letter or email that clearly states: your name and company, what work you did or materials you supplied, the dates you worked or delivered, how much you are owed, and that you are giving notice of a claim against the payment bond. Sign it and keep a copy.
Send this notice to three parties: the general contractor (or whoever hired you), the project owner, and the surety company (the bond company). You can find the surety's name on the bond document itself, or ask the contractor or owner. Send by email, certified mail, or hand delivery — anything that creates a record that you sent it and when. Do not rely on a phone call or a text message.
If you cannot find the surety company's address, send to the contractor and owner at the addresses you have, and state in your notice that you could not locate the surety despite reasonable effort. This protects you if the surety later claims they never got notice.
Documents you need to gather now
Before you file a formal claim, collect everything that shows what you did, when you did it, and what you were promised. This includes: your contract or purchase order, invoices you sent, timesheets or delivery records, photos of work completed, emails or texts confirming the work scope, and any written communication about payment terms.
Also gather proof that you were not paid. This might be a bank statement showing no deposit from the contractor, emails asking for payment with no response, or a letter from the contractor saying they cannot pay. If the contractor paid you partially, show what portion was paid and what remains unpaid.
If you worked as a subcontractor and the general contractor paid you late or partially, gather those records too. Sometimes the general contractor was paid by the owner but did not pass the money down to you — that is exactly what the payment bond is meant to cover.
What happens after you send notice
Once the bond company receives your notice, they have a choice: investigate and pay you, investigate and deny your claim, or do nothing. If they pay, they usually do so within 30 to 60 days, though this varies. If they deny, they will send you a written explanation. If they do nothing, you can file a formal claim with the court (for public projects) or pursue the claim through the bond document's dispute process (for private projects).
Do not assume silence means approval. Follow up with the bond company in writing after 30 days if you have not heard back. Ask for a status update and a timeline for decision. Keep records of every communication.
If the bond company denies your claim, you still have options. You can pursue the contractor directly through small claims court or civil court, depending on the amount owed. You can also consult an attorney who handles construction disputes — many offer free initial consultations. The bond company's denial does not end your right to recover; it just means you cannot recover from the bond.
What to do if the bond amount is too small
The bond amount is set by the project owner and contractor at the start of the project. It is often 100 percent of the contract price, but sometimes less. If multiple people are owed money and the bond does not cover everyone fully, the bond company distributes what is available, usually in the order claims were received.
If you are owed $10,000 but the bond only has $5,000 left, you will receive $5,000 from the bond. You can then pursue the contractor for the remaining $5,000 in small claims court or civil court. The bond claim does not prevent you from suing the contractor; it just means you exhaust the bond first.
Frequently Asked Questions
Can I file a claim if the contractor says they will pay me next month?
Yes. You do not have to wait for the contractor to actually default. If you have not been paid by the date promised and you are within the 90-day window, you can send notice. Sending notice does not prevent the contractor from paying you later — it just protects your right to claim the bond if they do not.
What if I cannot find the bond document or the surety company name?
Ask the general contractor, the project owner, or the architect — one of them will have it. If they refuse to tell you, send your notice to the contractor and owner anyway, stating that you could not locate the surety despite asking. This protects you. You can also contact your state's construction licensing board or the federal government (for federal projects) to find the surety.
Do I need a lawyer to file a payment bond claim?
No. You can send notice and file a claim yourself. However, if the bond company denies your claim or the amount is large, an attorney who handles construction disputes can help you decide whether to pursue the contractor in court. Many offer free consultations.
What if the project owner, not the contractor, owes me money?
The payment bond covers the contractor's failure to pay, not the owner's. If the owner hired you directly and did not pay, you would need to pursue the owner in court, not the bond. If the contractor hired you and the owner owes the contractor (who then did not pay you), the bond claim is your route.
Can I claim the bond if I was paid late but eventually got paid?
No. A payment bond covers non-payment, not late payment. If you were eventually paid in full, you have no claim against the bond, even if it took months longer than promised.