Private Payment Bonds

A payment bond is a contract whereby the Contractor and a Surety jointly agree to ensure that all construction bills will be paid.

1. Notice Requirement

   Most private payment bonds require that all claimants that do not have a direct contract with the Contractor must give the Contractor and the Surety notice of the fact that their construction bill has not been paid within 90 days of the date of last work or materials supplied to the job.

2. Filing Suit

   Most private payment bonds provide that suit to enforce the payment bond must be brought within one year of the last day of work of the General Contractor.