The NASBP document titled “Frequently Asked Questions from Bond Producers About Their Role in the Contract Bond Claims Process” is formatted into FAQs and general guidance responses for bond producers when they are faced with the inevitable and various questions from obligees, principals, claimants, attorneys, and the press. These questions and answers do not provide legal advice, but they do provide illustrative guidance to bond producers.
To access this new NASBP resource, click here.
In order to highlight this new educational tool, NASBP has been featuring in each issue of Pipeline one of the FAQs and the general guidance response to that question. Below is the second FAQ and response:
| I have a subcontractor client who is not getting paid on a job and wants to know what to do to protect his/her rights. What should I do?
After advising the subcontractor to consult with its own attorney, suggest that the subcontractor client obtain a copy of the general contractor’s payment bond. In addition, advise the subcontractor client, with the assistance of legal counsel, to meet all notice deadlines in the bond and any applicable statute and to provide as much documentation as possible to the payment bond surety in order to expedite any investigation the surety undertakes. Legal counsel could also advise concerning filing any lien available under state law. See Question #4. |
NASBP invites comments and suggestions on these FAQs as well as ideas for FAQs that should be included in a future version of FAQs. Share your thoughts about this document at info@nasbp.org.
Get Important Surety Industry News & Info
Keep up with the latest industry news and NASBP programs, events, and activities by subscribing to NASBP SmartBrief.
