Construction Bond Claimsadmin2021-11-02T02:41:05+00:00
Construction Bond Claims Construction bonds (also known as surety bonds) are frequently used in Oklahoma as means of protecting parties in a construction contract. A party seeking a bond must supply financial and other information related to experience and reputation to the bond underwriter. Owner requires contractor to provide a performance bond on a project. Owner is assured that the project will be completed by the contractor (or another contractor if the original contractor defaults) School district requires contractor to provide payment bond. If subcontractors on the project are not paid by the contractor, they may attach the bond. General contractor requires subcontractor to provide payment bond on a project, ensuring that all sub-subcontractors are paid.
Examples of how construction bonds are used: If you seek payment on a construction bond, then you will file a Bond Claim Notice. Please note that frequently this Notice must be delivered within a certain time after the work was completed. After receiving a Bond Claim Notice, the bond company will require you to complete a “Proof of Claim Affidavit.” The bond company is required to thoroughly investigate your claim. If a party disputes your right to payment under the bond, the matter is frequently moved to arbitration since so many construction contracts have arbitration clauses.