Texas Payment Bond Claims: Step-By-Step Checklists, Timelines, and How Sureties Investigate

Our earlier blog explained what a payment bond is and when projects are bonded. This guide takes the next step; it shows how to file a claim, what to include, and what happens afterward. You will learn the timelines, required documents, and surety process that make or break a payment bond claim in Texas.

Compliance Note: SunRay is not a law firm. This article is for educational purposes only. For legal advice, please consult an attorney.

Checklist Before Sending Any Notice

Before drafting your notice or claim, confirm these details to avoid costly errors.

Project Identity

• Exact project name as shown on the bond

• Full physical address and owner information

Your Role

• Your position in the construction chain

• Contracting party and its registered agent details

Bond Details

• Copy of the payment bond

• Surety name and mailing address listed on the bond

• Surety registered agent (available via the Texas Department of Insurance)

Dates and Dollar Amounts

• First and last furnishing dates (by month)

• Amount owed per billing period or pay application

Documents to Collect

• Contract or purchase order

• Change orders

• Unpaid invoices and pay applications

• Proof of delivery or time sheets

• Draft sworn statement of account (to be notarized)

Notice Deadlines by Project Type

Private Projects (Texas Property Code Chapter 53)

• Send preliminary notice to the Owner, General Contractor, and Surety by the 15th day of the third month after each unpaid month.

• Example: January work → Notice due April 15

• Use the statutory Texas form exactly as written

• The notice letter also serves as your bond claim on bonded private jobs

State Or Local Government Projects (Texas Government Code Chapter 2253)

• Preliminary notice due by the 15th day of the second month after each unpaid month

• Bond claim letter due by the 15th day of the third month

• Best practice: copy everyone above you in the chain, even if not required

Federal Public Works Projects (Miller Act)

• Send a single notice at least 90 days after your last day of work or delivery

• File suit within one year of the last furnishing date if unpaid

Addressing And Delivery Checklist

Make sure every notice reaches the correct place.

• Your Contracting Party: Principal office and registered agent (Texas Secretary of State)

• General Contractor: Business address and registered agent

• First-Tier Subcontractor (if applicable): Correct business and agent address

• Surety: Claim address on the bond and registered agent from the Texas Department of Insurance

Keep certified mail receipts or courier proofs for every delivery.

What To Include in Your Claim

Cover Letter

• Identify the project, your role, and months of unpaid work

• State total amount due and reserve rights for retainage

Sworn Statement Of Account
Include the required Texas language:

1. The amount of the claim is just and correct

2. All lawful offsets, payments, and credits known to the affiant have been allowed
   Sign by someone with personal knowledge and have it notarized

Attachments

• Unpaid invoices and pay applications

• Proof of delivery or time records

• Itemized description of labor and materials

• Change orders

• Copy of the payment bond

Quality Check
Confirm project names and addresses match the bond exactly.

Unit Price Contracts and Additional Language

If you are under a unit price agreement, your sworn statement should link quantities and unit rates directly to the contract schedule. Attach a short table summarizing work performed per month. This clarity helps the surety validate your claim faster.

Common Mistakes That Cause Denials

• Using the wrong month to calculate deadlines

• Missing the surety or serving the wrong party

• Editing the statutory notice form

• Skipping notarization

• Mismatching project name or address

• Waiting to attach invoices until requested

• Assuming “pay-if-paid” clauses delay your deadlines (they do not)

What Happens After You File

How Sureties Investigate

Once your claim is received, the surety will likely request:

• Your contract and any change orders

• Invoices, pay applications, and proof of delivery

• Sworn statement of account and job documentation

• Evidence of last furnishing or delivery date

• Copies of any recorded liens (if applicable)

Respond quickly and completely. One organized PDF packet is ideal. Delayed or incomplete responses can stall payment.

Possible Outcomes

• Full payment after verification

• Partial payment while disputed amounts are reviewed

• Denial due to timing, documentation, or defenses raised by the bonded contractor

Filing A Lawsuit If The Surety Does Not Pay

If the surety fails to pay, track your one-year suit deadline carefully. This one-year window starts from the date you mailed the claim (for private and public projects) or from the last furnishing date (for federal projects).

Work with counsel early to prepare. Lawsuits against the surety and your contracting party may require different pleadings and exhibits. Keep all mailing proofs and correspondence organized.

Quick Reference Timeline

Tip: Treat each month of work as its own timeline when projects span multiple months.

FAQs

Can I File Both A Lien And A Bond Claim?
Yes. Filing a lien adds leverage even on bonded private jobs. Send a copy of the lien to the surety.

Do Pay-If-Paid Clauses Change My Notice Deadlines?
No. Always send your notices on time regardless of payment conditions.

What If I Do Not Have The Full Bond Yet?
Serve the surety’s registered agent listed with the Texas Department of Insurance while continuing to request the bond copy.

Do I Need New Notices For Each Unpaid Month?
Yes. Calculate deadlines per month and send updated rolling notices.

What If I Served The Wrong Address?
Correct and resend immediately using the registered agent information.

What Documents Speed Up Surety Review?
Sworn statement, invoices, pay applications, proof of delivery, change orders, and the bond copy if available.

Key Takeaways

Get the bond copy early and verify addresses. Serve every required party by the statutory deadline. Include a notarized sworn statement and all unpaid documentation. Respond promptly to surety requests. Track the one-year lawsuit window and involve counsel if payment stalls.