In mid-May we completed a job for the National forest service. The GC has been paid for our work but failed to pay us. We continue to get the run around by the GC.
I have requested from the National forest service the bond info. I should have it by Monday. Meanwhile the GC has promised once again that we will be paid by next Thursday. Any insights to the bond process (Little Miller Act)? Any other insights?
Hope fully that Bond request will do the trick,, Bond company's do not like it when GC's create situations where request and challenge is needed and for sure on completed work. GC's need those bonds and Pray he is not on his way out of business. If there are challenges the bond company may raise their rates or refuse and believe me they keep up with who is who.
Legally by certified letter request the bond and contact agent. I pray this is as far as it goes for You, Make sure all your paper trail is complete including signed acceptance (punch list etc.) is in good easy to understand order,
If the GC is floating the money and not close to bankruptcy then filing a claim against the bond may take awhile to get paid.
We filed a claim against a bond where the GC filed for Bankruptcy and the bonding company paid us within 10 days of filing the claim.
Call the GC and tell them that if they can't get you a certified check you will need to file a claim against their bond and you don't want to do that but as they understand you don't have a choice. If they can't pay you and don't have a valid reason for not paying you then file a claim.
You can send a notice of non-payment to bonding company. They won't do anything to pay it, but they will copy the GC with a response that they are in receipt and that your claim is not considered valid unless you follow additional steps. Once you get the bonding company involved, it puts a bit more pressure on the GC to pay it. I ran a $170 million per year Construction firm and we ran into this a lot. We couldn't pay subs until we were paid 99% of the time, but sometimes made sense to pay the small subcontracts that approached 90-120 days due. We would never pay someone early who didn't ask.
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