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Civil Code §§ 9550-9566 | Public Contract Code § 7103
Bond Claims in California
What It Is
On state public works and large commercial or residential projects, general contractors are required to post a Payment Bond. This bond is a financial guarantee that subcontractors, suppliers, and laborers will be paid even if the GC defaults. A Bond Claim is the notice filed against that bond when payment is withheld.
When to Use It
File a Bond Claim when you are unpaid on a project where a payment bond was required and posted. In California, bond claims on public works must be filed within 6 months of project completion. On private works with a payment bond, the deadline is typically within the bond's stated claim period. Acting early preserves all your rights under the bond.
How Cover Me Handles It
Cover Me identifies the surety company and bond number from the project's public records, prepares the Bond Claim notice, and serves it on the surety and the general contractor by certified mail. A supervisor reviews the document for completeness before mailing. You receive a copy with USPS tracking and full documentation of service.
What's Included
- Bond claim preparation with surety and bond number verification
- Certified mail to surety company and general contractor
- Public agency notification where required
- Filing confirmation and proof of service
- Deadline tracking — 6 months from completion on public works
- Full documentation retained for 3 years
Commonly Asked Questions
1. How do I find out if a payment bond was posted on my project?
On public works projects, payment bonds are recorded with the public agency and are a matter of public record — Cover Me researches this as part of the service. On private projects, the bond is typically provided by the GC at the start of the job. If you are unsure, contact us and we will research the project.
2. What is the difference between a Payment Bond and a Performance Bond?
A Payment Bond guarantees that subcontractors and suppliers will be paid. A Performance Bond guarantees that the contractor will complete the work according to the contract. Bond Claims for unpaid labor and materials are made against the Payment Bond, not the Performance Bond.
3. Can I file both a Bond Claim and a Stop Notice on the same project?
Yes — on public works projects you can file both a Stop Notice (to freeze funds) and a Bond Claim (against the payment bond). Using both maximizes your payment recovery options. Cover Me coordinates both documents and tracks the deadlines for each.
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