Massachusetts Law Firm Experienced in Construction Payment and Performance Bonds
Many Massachusetts construction projects, particularly government projects, require contractors to provide payment and performance bonds to ensure the work will be completed to certain specified standards. These bonds, also known as surety bonds, require the contractor assume the responsibility for ensuring suppliers and sub-contractors are paid appropriately for their goods and services.
The construction law firm of Bishop & Reidy, P.C. has experience with all issues related to payment and performance bonds. Our lawyers represent 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 with our construction law attorneys.
Professional ▪ Competent ▪ Experienced
Performance bonds and payment bonds function slightly differently. Each type of surety bond helps ensure 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 then 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
Attorney John Reidy worked in a large construction law firm before founding Bishop & Reidy, P.C. This allows him to offer the level of experience often associated with larger forms at extremely reasonable rates.
We defend contractors when claims are made against a performance or payment bond by purchasers or subcontractors. We can respond to non-payment claims by showing a legitimate reason for non-compliance, such as bankruptcy or legitimate disputes with sub-contractors or suppliers.
When contractors are not in compliance with the terms of the construction agreement, Bishop & Reidy, P.C. can also represent those who need to make claims against performance or payment bonds.
We will review the contract and show non-compliance, draft the appropriate demands, and negotiate aggressively to resolve the dispute amicably so the project can continue or appropriate payment is made. If negotiation does not yield results, we are fully prepared to resolve the dispute through mediation, arbitration or litigation.
Our knowledge of both claims and defense of claims on performance or payment bonds allows us to anticipate the tactics and strategies opposing counsel will use. We can then counsel our clients effectively about the next steps that can be taken to resolve the conflict.
If you need to post a performance or payment bond or are involved in a bond dispute, contact our firm today to schedule an appointment.
