Construction Law

When does bond claims need legal review?

Legal review is especially useful when the matter involves:

• whether the project is private, Texas public, or federal
• who may claim under the bond and what notice is required
• the deadline to give notice or file suit

What evidence can shape the outcome?

Preserve complete, original records. Useful materials often include:

• the bond, prime contract, and subcontract or purchase order
• invoices, pay applications, delivery tickets, and change orders
• notices, proof of delivery, and a last-work timeline

1. Statutory Landscape

Federal – Miller Act (40 U.S.C. §§ 3131–3133)

On federal construction projects, the Miller Act requires both performance and payment bonds for contracts exceeding $100,000. Claimants must give written notice to the prime contractor and surety within 90 days after last providing labor or materials. A lawsuit may be filed after day 91 but must be brought within one year of the claimant’s last work on the project.

Texas Public Works – “Little Miller Act” (Tex. Gov’t Code ch. 2253)

For Texas state and county projects, a payment bond is required on contracts exceeding $25,000, and for municipal projects when contracts exceed $50,000. Performance bonds are required once a project surpasses $100,000.

To preserve a claim:

• A “third-month notice” must be sent by certified mail to the prime contractor and surety by the 15th day of the third month after each month of unpaid work.
• Lower-tier claimants providing specially fabricated materials or facing retainage issues must also provide a “second-month notice” (§ 2253.047).
• A lawsuit must be filed no later than one year after the final completion of the project (implicit under § 2253.104).

Texas Private Projects – Optional Payment Bond in Place of Liens (Tex. Prop. Code ch. 53, subch. H)

On private construction projects, an owner or general contractor may post a payment bond to discharge mechanics’ liens. There is no monetary threshold for this option.

Claimants must send notice of unpaid work by the 15th day of the third month following each month in which labor or materials were provided (§ 53.056). If a bond claim is perfected, the deadline to file suit depends on when the bond was recorded:

• Within one year if the bond was on file when the lien was recorded.
• Within two years if the bond was filed after the lien was recorded (§ 53.208(d)).

2. What Constitutes a “Bond Claim”?

A bond claim is a written demand upon the surety when the bonded contractor fails to meet its payment or performance obligations. Unlike a mechanic’s lien, which burdens the project real estate—a bond claim taps the surety’s pocket, providing a direct source of recovery without clouding title.

3. Common Construction Bonds

• Bid Bond – compensates the owner if the low bidder refuses to sign the contract or furnish final bonds.
• Performance Bond – guarantees faithful completion of the work.
• Payment Bond – secures payment to sub-tier contractors, suppliers, and laborers if the prime fails to pay.

On public projects, performance and payment bonds are mandatory; on private work, they are elective but powerful tools for risk transfer.

4. Road-Map to a Successful Texas/Federal Bond Claim

1. Secure the Bond Early
   Request a copy of every bond at contract award—both Texas and federal statutes obligate the prime contractor or public entity to provide it upon written request.
2. Calendar the Notice Deadlines
   * Federal: 90-day notice.
   * Texas public: 2-month (certain lower-tier issues) and 3-month notices.
   * Texas private: 3-month notice.
3. Prepare a Sworn Statement of Account
   Include contract price, payments received, unpaid balance, and retainage (if any). In Texas, the statement must affirm offsets have been credited (Tex. Gov’t Code § 2253.041(c)).
4. Send Certified Notice
   Mail to the addresses specified on the bond or as allowed by statute. Certified or registered mail is mandatory for Texas public work claims (§ 2253.048).
5. File Suit Timely
   Observe the one-year Miller Act limitation and the one-year (sometimes two-year) limitations under Texas statutes. Delay is fatal.
6. Co-operate with the Surety’s Investigation
   Expect the surety to audit invoices, delivery tickets, payroll, and change orders. Well-organized records expedite resolution or settlement.

5. Why Mastery of Bond Claims Matters

• Guaranteed Payment – Replaces uncertain credit risk with the surety’s capital.
• Project Continuity – Performance bonds keep public projects on schedule when the contractor falters.
• Negotiation Leverage – A credible threat of a promptly-perfected claim often unlocks voluntary payment.
• Legal Compliance – Missing a statutory notice or suit deadline extinguishes the right to recover—even on meritorious claims.

Put Our Surety-Law Knowledge to Work

Bond-claim strategy sits at the intersection of statutory fine print and construction-industry realities.  If you are facing non-payment, fear a prime-contractor default, or simply wish to fortify your contracts with the right bonds, contact us today, and turn statutory remedies into prompt payment.

Common questions about Bond Claims in Texas

Is a bond claim the same as a mechanic's lien?

No. A bond claim is made against a surety bond, while a mechanic's lien attaches to qualifying real property. Public property generally is not subject to a private mechanic's lien, so statutory payment-bond remedies may be central on public work. Some projects require careful coordination of both remedies.

What records should I bring to an initial consultation?

Bring the bond, prime contract, and subcontract or purchase order, invoices, pay applications, delivery tickets, and change orders, and notices, proof of delivery, and a last-work timeline. A short dated chronology and a clear statement of the desired business or personal outcome will make the review more efficient.

How quickly should I act?

Act promptly. Contract notice, payment, lien, bond, protest, warranty, insurance, arbitration, and limitations periods can be short and may run on different events. Build a matter-specific deadline calendar before informal negotiations consume the available time.

Official legal reference

Start with U.S. Code, Title 40, Chapter 31, Subchapter III — Bonds. Statutes, rules, contracts, and procedures change, and the correct law depends on the facts and forum.

Discuss Bond Claims with a Houston attorney

Grosu Law Firm serves Houston-area businesses, contractors, developers, property owners, and consumers. A consultation can help identify the controlling documents, urgent deadlines, realistic options, and the next decision that matters.