Tag: Payment Bond
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Federal Subcontractors and Suppliers May Get More Bond Protection
Pursuant t the Miller Act, federal subcontractors and suppliers are protected by payment bonds on federal projects exceeding $150,000. Under the current statutory scheme, that number could rise due to inflation. Proposed legislation would prevent this threshold from rising.
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Pay If Paid Clauses Won’t Stop Louisiana Bond Claims
A recent Louisiana case helps make it clear – Louisiana bond claims won’t be stopped by pay if paid provisions, regardless of whether the project is public or private.
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Kansas Lien Law: Bonded Off Liens Are Cured Of Defects
When a mechanics lien is bonded off under Kansas lien law, mistakes that were made in the lien filing won’t affect the ability to recover under the bond.
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Changes Made to the SBA’s Surety Bond Guarantee Program
Last month, The U.S. Small Business Administration changed its Surety Bond Guarantee program to make bonds available to more small construction businesses.
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Can You Lien Coastal Restoration Work In Louisiana?
Coastal restoration work for Louisiana’s Coastal Protection and Restoration Authority may be be lienable, but payment bonds are also available.
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A Tale of Two Bonds: Obligations of a Surety Vary State-By-State
Recently, two identical cases came out differently in Kansas and South Carolina regarding the obligations of a surety bond provider.
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Waiving Bond Requirements On Federal Contracts
The Government Accountability Office recently determined that surety bond requirements are rarely waived on federal projects. Without protection, small businesses and top subcontractors would likely avoid work on the projects.
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Tax Planning Can Cause Mechanics Lien Problems
Mechanics liens are not available on public projects, so surety bonds are typically available to provide protection. However, when a project is part public and part private, issues can arise. That is exactly what happened under a tax relief plan making Missouri pet food plant technically publicly owned.
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Mechanics Liens and Bankruptcy: Recovery Hinges on State Laws
Mechanics liens often survive bankruptcy proceedings, but outcomes vary from state to state. In a recent case out of New Jersey, two material suppliers had their claims tossed aside because they were filed after the automatic stay. Had they been able to relate-back, the claims might have succeeded.
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Defining “Labor” Under Pennsylvania Surety Bond Laws
About a month ago, I wrote a post about defining “labor” under the Miller Act. While certainly not a hard-line rule, that post concluded that while physical exertion qualifies as labor under the Miller Act, professional work done by architects and engineers is less likely to do so. This question exists at the state level as well. A recent…