Surety and Bond Claims

When it comes to construction projects, guaranteeing your contractor will complete performance of work is nearly impossible. Fortunately, gaining security that funding and personnel will be available to complete that work is possible. That is where sureties come into the picture.

Public entities have required the use of sureties for years on publicly funded projects. A surety is a person, generally a licensed business entity, who guarantees the performance of its prinicipal, the contractor, to another person, the project owner. The surety attaches itself to the project in the form of a payment and/or performance bond, which ensures that the work will be completed and claims to payment by other contractors are indeed paid.

Savvy project owners have begun to utilize bonding as a way to ensure that liens do not cause them financial harm and their projects get completed. The bond provides a way for subcontractors and suppliers to get paid, without having to chase down the abandoning general contractor.

Finally, you may discover that your state’s governing contractor regulating agency requires all contractors to have a statutory bond in order to obtain licensing. Washington state is a wonderful example of state protection to consumers and other contractors, who sometimes find themselves without a remedy to payment.

In order to collect against these bonds, an legal action may be necessary. Washington state, for instance, demands a particular statutory mechanism for attachment of a bond. Once attached, a claimant must prove priority in order to collect upon that bond. While contractors are not excluded from obtaining recovery of the bond’s proceeds, they will find that consumers hold priority to those funds.

Recovery of public and private project bonds may require prompt action, and claims are limited by strict statutes of limitations. A claimant is encouraged to obtain as much information as it can about the bond on your project. This will help when it comes to taking action against it. Once a dispute arises, a claimant may be required to send specific notices to the project owner and bonding company. Notices depend upon the type of project and the type of claim.

Wolfe Law Group has assisted many people in their claims against sureties. We understand the bonding process and want to ensure that your rights are well-cared for. You can check out the resources below for further information on bonding.


Washington Department of Labor & Industries – Travel here to check that your contractor is properly licensed and bonded. Further, ensure that your contractor does not have active judgments or claims against its bond. This site will provide you with the name of the bonding company and the amount of the bond on record.

Construction Law Monitor – Please peruse our informative blog postings at the Construction Law Monitor. Here you will find articles on the subject of bonds and sureties.