How to Get the Bonding Company to Pay Me? - Florida Webinar

In this blog, presented by SunRay Construction Solutions and Alex Barthet of The Barthet Firm, Florida contractors will learn the deadlines, requirements, and strategies that decide whether a bond claim gets paid or denied due to a simple procedural error.  

Why Bond Deadlines Matter So Much

Bond claims are highly technical. Even if the money is legitimately owed, missing a single deadline can eliminate the right to recover.

Bond claims into two main categories:

• Private projects

• Public projects such as schools, hospitals, and courthouses

For each, the rules around notices and lawsuits are strict and different.

Bond Claims on Private Projects

On private bonded jobs, the rules depend on who the claimant contracted with.

1. If you have a direct contract with the bonded prime contractor

For example, you are the electrician, plumber, or roofer hired directly by the bonded GC.

A Notice to Owner or Notice to Contractor is not legally required if you contract directly with the bonded contractor. However, SunRay recommends sending one anyway and having a fixed internal rule so every job over a certain dollar threshold is noticed automatically. Companies that follow a uniform process avoid mistakes.

Key deadlines:

Notice of Nonpayment

• Must be served on both the contractor and the surety within 90 days of the claimant’s last work or last delivery of materials.

• The last work must be real work, not punch list work, warranty work, or repairs of the claimant’s own defective work.

• The 90 days include weekends and holidays. If the 90th day lands on a weekend or legal holiday, it rolls to the next business day.

Lawsuit Deadline

• A lawsuit against the bonding company must be filed within one year of the claimant’s last work or delivery of materials.

• Many people assume the Notice of Nonpayment is the claim, but legally the claim is not complete until the lawsuit is filed.

Failing to file suit within one year usually ends the bond rights entirely.

2. If you are a supplier to a subcontractor or sub-subcontractor

If the claimant supplies materials or labor to someone who is not the bonded prime contractor, the rules are stricter.

Notice to Owner or Notice to Contractor

• Must be sent and received within 45 days of first furnishing labor or materials.

Notice of Nonpayment

• Still due within 90 days of last work or last delivery.

Lawsuit

• Still must be filed within one year of last work or materials.

In short, the lower you are in the contracting chain, the more notice requirements apply, but the lawsuit deadline remains the same.

Subcontractor Bonds: Hidden Extra Protection

On many projects, there may be more than one bond.

• The prime contractor may have a payment bond.

• A subcontractor may also have its own payment and performance bond.

Subcontractor bonds are often not recorded in public records. To find out if one exists, a claimant should request a copy of the bond from both the customer and the prime contractor. Prime contractors frequently share subcontractor bonds because they prefer claims to be made against the subcontractor’s bond instead of their own.

Each subcontractor bond is controlled by its own bond form. These forms vary widely. To make a claim:

1. Obtain the bond.

2. Read it carefully.

3. Follow exactly the process described in the bond.

Some subcontractor bonds do not have a formal claim process at all, in which case the only requirement may be to file a lawsuit within the allowed time period.

Bond Claims on Public Projects

Public projects have their own rules, especially claimants with direct contracts with the bonded prime contractor.

1. If you contract directly with the bonded prime contractor on a public job

• No Notice to Owner is required.

• No Notice of Nonpayment is legally required.

To preserve bond rights, the only mandatory step is filing a lawsuit within one year of last work or delivery of materials.

If the only amount owed is contractual retainage, a special procedure may extend the one-year period, but this involves specific written requests and responses.

2. If you are a sub-subcontractor or supplier to a subcontractor on a public bonded job

The familiar three steps apply again:

Notice to Owner or Notice to Contractor

• Due within 45 days of first furnishing labor or materials.

Notice of Nonpayment

• Due within 90 days of last work or materials.

Lawsuit

• Must be filed within one year of last work or materials.

On public jobs, subcontractors may also have bonds. In that case, a claimant may have rights against both the GC’s bond and the subcontractor’s bond. These obligations are joint and separate, although the claimant only recovers the amount owed once.

What Happens After You Send a Notice of Nonpayment

Once a Notice of Nonpayment is sent to the surety, the claim process begins. Typically:

• The surety sends a request for backup documentation and a proof-of-claim form.

• The claimant is asked to provide detailed information and sign under oath.

In Florida, there is no legal obligation to provide this backup when making a claim on a prime contractor’s payment bond, unless the subcontractor bond requires it.

Most sureties simply forward whatever is provided to the bond principal and ask whether they approve payment. Suretyship is not insurance. Any money paid out by the surety must be reimbursed by the contractor or subcontractor who obtained the bond. Because of this, sureties strongly prefer that the contractor resolve the claim directly.

Delays, Traps, and Time-Barred Claims

Some sureties use the proof-of-claim process to delay the claim or wait out the claimant.

Risk factors include:

• Long periods of “investigation” followed by a denial once the one-year deadline passes

• Formal notices sent by certified mail that shorten the time to respond, sometimes to only 20 days

Claimants must treat official correspondence seriously and never assume that ongoing discussions stop or extend the lawsuit deadline.

The 60-60 Rule: A Practical Strategy for Getting Paid

Step 1: At 60 days from last work

• Begin preparing and sending the Notice of Nonpayment.

• Do not wait until the last few days.

• The Notice must be received by the 90th day, so starting early prevents last-minute errors.

Step 2: The next 60 days of consistent pressure‍

During this period, the claimant should:

• Call

• Email

• Send letters

• Follow up with the contractor and the surety

Persistent and professional follow-up often triggers payment without further escalation.

Step 3: If still unpaid, escalate to a lawsuit

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If payment is not received after this follow-up period, the claim should usually be given to a construction attorney to file suit unless there is a clear business reason to wait, such as maintaining an important ongoing relationship. Filing a suit well before the one-year deadline greatly increases the chances of being paid.

Final Takeaways

Always remember these points when working with bond claims:

• Know your deadlines.

• Treat notices and lawsuits as separate steps.

• Do not rely on the surety investigation.

• Use a systematic internal process.

• Track dates and follow the 60-60 Rule.

If your company is dealing with a bonded project and struggling to get paid, applying these principles, especially strict deadline tracking and consistent follow-up, can make the difference between writing off a bad debt and successfully collecting what you earned.

Common Questions Contractors Ask

1. Do these lien and bond laws apply in California?

Lien and bond laws vary by state. The rules discussed here are based on Florida law. If you are working in California or another state, you must review that state’s specific statutes and requirements.

2. What if we are a general contractor (GC) making a claim against a subcontractor’s bond?

A GC typically makes a claim against the subcontractor’s performance bond, not their payment bond.

• Payment Bond: Ensures the subcontractor pays their bills.

• Performance Bond: Ensures the subcontractor completes work properly, on time, and within budget.

You may claim against a subcontractor’s payment bond only if the subcontractor has failed to pay their own lower-tier vendors or suppliers. Follow the exact procedures listed in the bond.

3. How do I make a claim against a subcontractor’s bond?

• Payment Bond: Usually requires a demand letter and, if unresolved, a lawsuit against the surety for failing to pay.

• Performance Bond: More complex. You must carefully review the bond and comply with every step required by the surety.

4. If the subcontractor’s work failed after completion, what is the time limit to file a performance bond claim?

The deadline is generally the time limit listed in the bond.
In Florida, the maximum outside limit is up to five years from the date the issue that caused the default occurred. However, many bonds have shorter deadlines, so you must check the specific bond language.

5. On a private project with both a subcontractor’s bond and a GC’s bond, do I need to file two separate bond claims?

Yes. These are two different bonds with different rules.
You should:

• File separate claims,

• Follow each bond’s specific requirements, and

• Avoid combining them into one notice.

A notice of non-payment may not be enough for a subcontractor’s bond, you must read the bond and provide every document or detail it requires.

6. If a bond is not recorded, does that extend my deadline to file a bond claim?

Yes.
If the GC fails to reference or record the bond in the Notice of Commencement, the deadlines to serve:

• The Notice to Owner, and

• The Notice of Non-Payment
  are extended until you have actual notice that the bond exists.

This gives you additional time to preserve your rights.