Financing Your First Business

3 Tips For Filing For A Payment Bond & Getting It Paid Out In A Timely Manner

25 November 2017

Jimmie Holland

If you need to submit a claim for compensation for a payment bond, it helps to understand the ins and outs of the process so you can get through the process quickly and in a timely manner.

#1 Submit A Notice Of Claim

The first thing you are going to need to do is submit a notice of claim. You need to make sure that you submit the notice of claim to contractor who secured the bond through a financing company. When you submit the notice of claim, you need to make sure that the way it is written fulfilled all of the statutory requirements that were laid out in the bond contract, which means that you need to make sure it includes all the requested relevant information. If the request is not written up correctly, you will have to resubmit the notice of claim, further delaying the process of getting your compensation.

#2 Send A Copy Of The Notice Of Claim

Second, you need to make sure that after you give the contractor who holds the bond a notice of claim, that you also send one to the surety company that holds their bond. When you mail the notice, be sure to request a tracking number, delivery notice and require a signature for the notice of claim. This will provide you with evidence of when and who at the surety company received your notice of claim. Your contractor should technically contact the surety company backing up their bond, however, contacting them directly yourself will speed up the process and ensure that all parties are on the same page.

#3 Contact The Bond Company

Third, you need to follow up with the bond company. After they get your notice, give them a few days to process your notice of claim. Then, call the bond company. Find out who should be your contact person and get their extension and email address. Continue to call an d follow up until the claim is processed.

Having and asking for a point person will make the process more streamline. The bond company is going to more than likely ask you for correspondences, invoices, contracts and other documents that showed your communications and exchange of payment with the contractor. Having a point person will help ensure that you know exactly what to submit and that your claim is pushed forward. 

If you need to file for a payment bond, create a notice of claim and give it to both the contractor and the bond company, and be sure to follow up and get a point person assigned to your case. Contact a company, like Surety Bond Professionals, for more help.

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