This form may be completed and used by a subcontractor or supplier who has not been fully paid on a project and is seeking payment from the surety (insurer) under the terms of a payment bond. In construction, a payment bond is a bond on the general contractor to ensure payment to subcontractors and suppliers.
California Bond Claim Notice
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Multi-State
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US-CONST3
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How to fill out Bond Claim Notice?
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FAQ
If the surety does not voluntarily pay the claim, a lawsuit must be filed against the payment bond surety as follows: (a) if the public entity files a notice of completion or cessation notice, thirty (30) days six plus (6) months after the notice is filed or (b) if neither a notice of completion or cessation is filed, ...
The payment bond is a valuable source for payment to subcontractors and suppliers who have not been paid for work performed on California construction projects. Although a payment bond is typically associated with public works projects, payment bonds can also be used on private works projects.
Filing a Bond Claim The consumer will contact the surety directly to engage this process. Claims against a surety company may be filed by homeowners, any person damaged by a willful and deliberate violation of a construction contract or by employees damaged by the contractor's failure to pay wages.
The Little Miller Act is a state-specific statute that acts as an extension of the federal Miller Act of 1935. The Miller Act states that all prime contractors on government construction projects are required to obtain bonds that guarantee both performance and payment for the invested parties.
If you're wondering how to file a notice of completion in California, it's filed and recorded at the county clerk's office in the county where the project is located. To locate the appropriate clerk's office, see our list here.
Filing a Bond Claim If the contractor does not comply with the conditions of the bond, a claim can be filed with the surety company. The consumer will contact the surety directly to engage this process.
The stop work notice must be served personally or by certified mail on the contractor and the director of the department which let the contract for the state of California, or the public disbursing officer responsible to make payments under the contract, or with the body by whom the contract was awarded.
While all licensed California contractors are required to carry a $25,000 contractor license bond, certain contractor licenses may require a $25,000 Bond of Qualifying Individual, a $100,000 LLC Employee/Worker Bond, or a Disciplinary Bond depending on their license status.
