Payment Bond

A payment bond is a surety bond posted by a contractor to guarantee that his subcontractors and material suppliers on the project will be paid. They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds. There is no high-risk market available for performance and payment bonds. Up to the turn of the century bonding companies were approving everyone, even those who did not qualify for the bond type or size. During this time record loses occurred throughout the industry as many companies closed their doors.
Posts about Payment Bond
  • SUBCONTRACTOR’S MILLER ACT PAYMENT BOND CLAIM

    … Since I wrote my ebook on the application of federal Miller Act payment bonds, I have not discussed a case applying the Miller Act. Until now! Below is a case that reinforces two important points applicable to Miller Act payment bond claims. First, the case reinforces what a claimant needs to prove to establish a Miller Act payment bond…

    Florida Construction Legal Updates- 14 readers -
  • VENUE FOR SUING PUBLIC PAYMENT BOND

    … Public payment bonds (excluding FDOT payment bonds) are governed under Florida statute s. 255.05. As it pertains to venue—the location to sue a public payment bond–the statute provides in relevant portion: (5) In addition to the provisions of chapter 47, any action authorized under this section may be brought in the county in which…

    Florida Construction Legal Updates- 14 readers -
  • MILLER ACT AND “PUBLIC WORK OF THE FEDERAL GOVERNMENT”

    … transportation projects. Based on the federal funding, the Nation issued a bid for a transportation project in Mayes County, Oklahoma and the project was awarded to a prime contractor. The prime contractor provided a payment bond that identified the United States as the obligee (as a Miller Act payment is required to do) and stated that it was issued per…

    Florida Construction Legal Updates- 15 readers -
  • MILLER ACT PAYMENT BONDS

    … Do you do work on federal construction projects? Are you familiar with the Miller Act? Below is a portion of a recent presentation on Miller Act payment bonds. Download (PPTX, 120KB) Please contact David Adelstein at dma@katzbarron.com or (954) 522-3636 if you have questions or would like more information regarding this article. You can…

    Florida Construction Legal Updates- 9 readers -
  • INDUSTRY FORM CONTRACTS SERVE AS A TEMPLATE FOR YOUR CONSTRUCTION CONTRACT

    …, but they still require modifications based on the objectives of the parties and the preferred project delivery method. Download (PDF, 196KB) Please contact David Adelstein at dma@katzbarron.com or (954) 522-3636 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1. This entry was posted in Contract Drafting and tagged AIA, ConsensusDocs, construction contract, DBIA, EJCDC, industry form contract by David Adelstein. Bookmark the permalink.…

    Florida Construction Legal Updates- 11 readers -
  • DURATION OF PUBLIC PAYMENT BOND = FULL TERM OF PUBLIC CONTRACT

    … Florida Statute s. 255.05 governs public payment bond rights on Florida public construction projects (other than Florida Department of Transportation projects). This is an important statute for all that perform Florida public construction work! (Check out this article for more information on s. 255.05 and this chart summarizing steps required…

    Florida Construction Legal Updates- 12 readers -
  • DRAFTING THE BOND FORM, PARTICULARLY THE PERFORMANCE BOND FORM

    … the bond-principal’s default. What if the surety executes a bond form prepared by the obligee and there is an ambiguity in the bond? Should the ambiguity be interpreted against the obligee as the drafter of the bond? This issue was addressed by the Fourth District Court of Appeal in The School Bd. Of Broward County v. Great American Ins. Co., 807…

    Florida Construction Legal Updates- 11 readers -
  • MILLER ACT CLAIM FOR UNSIGNED CHANGE ORDERS

    … off by the parties in a change order prior to the commencement of the work. Well, can such requirements be waived? If so, can such change orders form the basis of a Miller Act claim? The answer is generally yes provided the party arguing waiver can support the waiver with evidence (that the other party voluntarily relinquished the requirements…

    Florida Construction Legal Updates- 12 readers -
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