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Representation Throughout The Bond Process
The construction law attorney at John S. Reidy, PLLC, has experience with all issues related to payment and performance bonds. Attorney John S. Reidy worked in a large construction law firm before founding his own firm. This allows him to offer the level of experience often associated with larger firms at extremely reasonable rates.
Our firm represents general contractors throughout the process of posting surety bonds, making sure they conform to the Miller Act when necessary. We also handle disputes and claims made against payment and performance bonds. Contact our office today to schedule an appointment at our Quincy office.
Performance Bonds And Payment Bonds Have Different Functions
Each type of surety bond helps to ensure the completion of a project, but the remedy for default is different:
- Payment bonds: A payment bond is usually required on any large project. It is an insurance policy taken out by a contractor to guarantee completion of the project and payment of all subcontractors and material suppliers. If the contractor defaults by failing to complete the project as specified, the insurance payment will reimburse the owner of the project for expenses left necessary to complete the project.
- Performance bonds: Less common than a payment bond, a performance bond is also an insurance policy taken out by a general contractor. In this case, should the contractor default, the insurance company can compel the contractor to complete the project.
Resolving Payment And Performance Bond Disputes
We defend contractors when claims are made against a performance or payment bond by purchasers or subcontractors. We can respond to nonpayment claims by showing a legitimate reason for noncompliance, such as bankruptcy, or legitimate disputes with subcontractors or suppliers.
When contractors are not in compliance with the terms of the construction agreement, attorney John S. Reidy can also represent those who need to make claims against performance or payment bonds.
We will review the contract and show noncompliance, draft the appropriate demands and negotiate aggressively to resolve the dispute amicably, so the project can continue until appropriate payment is made. If negotiation does not yield results, we are prepared to resolve the dispute through mediation, arbitration or litigation.
Our knowledge of claims and defenses regarding performance or payment bonds allow us to anticipate the strategies of opposing counsel. We counsel our clients effectively about the next steps that can be taken to resolve the conflict.