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The Little Miller Act provides a layer of protection through payment bonds, ensuring subcontractors and suppliers get paid for their work even if the prime contractor falters. But filing a payment bond claim requires navigating specific steps and deadlines to ensure success.
Steps to File a Payment Bond Claim on Public Projects in Florida
Here are the steps to follow -
Step 1: Secure the Payment Bond
- Public projects exceeding $25,000 require a payment bond. Request a copy from the general contractor (GC) or the public entity overseeing the project.
- Remember, not all public projects require bonds (e.g., under $100,000). Always double-check the specifics.
Step 2: Notice to Contractor (Optional)
- Subcontractors and suppliers without a direct contract with the GC must send a Notice to Contractor within 45 days of starting work or delivering materials.
- This step helps establish your entitlement to claim against the bond later.
Step 3: Notice of Nonpayment (Critical!)
- When a payment goes unpaid, send a Notice of Nonpayment to both the GC and the surety company that issued the bond.
- Time is of the essence! You have 45 days after the first furnishing labor or materials, but no later than 90 days after the last date of furnishing, to send this notice.
- The notice should clearly state the amount owed, the project details, and your intention to claim against the bond.
Step 4: Enforcing Your Claim
- If payment isn't received after sending the Notice of Nonpayment, you have one year from the date of final project acceptance to file a lawsuit against the surety company.
- This lawsuit seeks to enforce your claim and recover the amount owed from the bond.
- Legal complexities arise here, so seeking legal counsel is crucial for success.
Additional Tips
- Maintain thorough records of all invoices, contracts, and communication with the GC and surety company.
- Respond promptly to any requests for information or clarifications.
- Consider mediation or alternative dispute resolution before escalating to a lawsuit.
- Filing a payment bond claim requires strict adherence to deadlines and specific procedures. Consulting a construction attorney experienced in Florida's Little Miller Act ensures you navigate the process effectively and maximize your chances of recovering owed funds.
Best Practices for Florida Payment Bond Claim on Public Projects
Filing a payment bond claim on a public project in Florida can be complex, but following these best practices will increase your chances of success:
Before any Disputes
- Obtain a copy of the payment bond: Even if things seem smooth, having a copy beforehand ensures you have crucial information when needed. Get it from the general contractor or the public entity.
- Understand the notice requirements:
- Notice to Contractor (NTC): Required for subcontractors and suppliers not directly contracted by the prime contractor. Send it before work begins or within 45 days of first furnishing (certified mail recommended).
- Notice of Nonpayment: Send to the prime contractor and surety company after 45 days of first furnishing but no later than 90 days after last furnishing. Both are crucial to preserve your claim rights.
During Disputes
- Document meticulously: Keep records of all invoices, contracts, change orders, communications, and proof of delivery/services. Detailed records strengthen your claim.
- Communicate clearly and timely: Send written demands for payment to the prime contractor and keep copies. Early and clear communication demonstrates good faith.
- Consider mediation or negotiation: Before legal action, explore alternatives like mediation or negotiation. They can be faster and less expensive.
General Best Practices
- Seek legal counsel: A construction lawyer with expertise in Florida payment bond claims can guide you through the complexities and maximize your chances of success.
- Meet deadlines strictly: Missing deadlines can jeopardize your claim, so adhere to them meticulously.
- Be professional and assertive: Maintain a professional demeanor throughout the process while firmly asserting your rights.
Making a Florida payment bond claim on public construction projects requires careful attention to detail, adherence to deadlines, and thorough documentation. By following the steps outlined in this guide, subcontractors and suppliers can protect their rights and maximize their chances of receiving the payments they're owed.
