Statutory payment bonds can be posted for private or public construction projects. A payment bond is contract of suretyship that obligates the surety (bonding company) for payment to unpaid subcontractors, sub-subcontractors and materialmen.
Generally, all sub-subcontractors and materialmen to the subcontractors or sub-subcontractors must comply with preliminary notice to contractor requirements under Florida law. The purpose of the preliminary notice to contractor is to inform the contractor that the claimant will look to the bond for protection if not paid. The preliminary notice to contractor must be served timely to perfect payment bond claim rights.
If the claimant has not been paid, then a notice of nonpayment may need to be served in a timely fashion upon the contractor and bonding company to perfect the claimant’s rights. Ultimately, if the claimant is unsuccessful in obtaining payment, a lawsuit against the bonding company will need to be filed to enforce the payment bond claim. As always, time limits apply and it is critical that deadlines are met.