When it comes to managing payments in the construction industry, there are deadlines everywhere. There are notice deadlines, and if you’re ever forced to submit a payment bond claim (or a mechanics lien claim), there’s a deadline to do that as well.
The thing is, each state is different when it comes to calculating these deadlines. Regarding the deadline to submit a bond claim in particular, most states calculate the deadline in one of three primary ways.
Please read on for a quick overview on how states determine the deadline to submit a bond claim on a public construction project.
The Three Ways to Calculate Bond Claim Deadlines
One quick note before we dive in: this article is about bond claim deadlines on PUBLIC construction projects. While it’s possible that a payment bond could be present on a private construction project, this post does not address that scenario. Also, this post does not address the deadline to file a mechanics lien (although it’s worth noting that a mechanics lien claim will never be allowed on a public construction project.) So now that we’re all on the same page, let’s proceed!
Bond Claim Deadlines on Public Projects
1. Bond Deadlines Calculated from your last furnishing
Some states such as Texas and Florida calculate the deadlines for bond claims from the claimant’s last furnishing shown above in BLUE. For example, in Georgia, a bond claim must be filed within 90 days after the claimant’s last furnishing of labor and/or materials to the project. So, if the last shipment of materials ships on January 1, then the deadline to file a bond claim in Georgia would be 90 days from January 1, no matter when the project is completed.
2. Bond Deadlines calculated from project’s completion
Some states calculate bond claim deadlines based on the completion of the entire project shown above in GREEN. For example, in Iowa, a bond claim must be filed within 30 days from the completion of the project. So, if the project in Iowa is completed on April 1, then a claimant must file their bond claim within 30 days of April 1. Remember: in a project completion state, it doesn’t matter when the last furnishing of supplies was because the deadline is based on the date of completion.
3. Bond Deadlines calculated in some combination
Some states follow the third category of deadlines, which is a combination and/or further requirements shown above in RED. The rules in these states can get pretty complicated so please refer to your state’s specific statue.
The “Not Applicable” States
Finally, there is a 4th category for everyone else. For these “Not Applicable” states, there is either no specific deadline requirement that’s indicated via that state’s law, or, as in the case of Colorado, the state does not require a “written claim of any kind” in order to submit a valid claim against a payment bond.
Free Payment Rights Advisor Tool from zlien
One of the most important questions about lien rights concerns whether a potential claimant even has the right to file a bond claim in the first place. What happens if filing a bond claim isn’t an option? What are some other actions to take when you’re having a payment issue? We have a free tool that will help you with these questions. It’s called the Payment Rights Advisor. It only takes a couple of minutes — just answer 5 quick questions about your job, and the Payment Rights Advisor will give you all of your best options, including whether or not you qualify to make a bond claim.