Bond Claims and Litigation
Experienced attorneys who help resolve disputes
Surety bonds are typically used by investors in construction projects to protect against disruptions and financial loss. If there are problems with the project, bonds ensure that bills will be paid. But disputes can lead to bond claims being denied. That’s why you need an experienced construction litigation attorney.
Eller Tonnsen Bach, LLC represents contractors, subcontractors, building suppliers and other businesses in the construction industry throughout North Carolina and South Carolina. We understand the challenging legal issues that can occur in construction projects and help clients resolve disputes involving bond claims.
Construction bonds – also known as contract bonds – are a type of a surety bond that protects the assets of an investor or property owner. In short, they provide a guarantee that bills related to a construction project will be paid. The insurance company or bank that issues the bond is guaranteeing that the project will be completed by a contractor.
What are common construction bonds?
Types of construction bonds include:
- Bid Bonds
A bid bond protects the property owner if the project bid is not honored by the principal (usually a contractor or construction company). The owner has the right to sue the principal and the surety (bond issuer) to enforce the bond.
- Performance Bonds
A performance bond guarantees that a contractor (principal) will complete the project in accordance with the contract terms. If the contractor defaults, the owner can make a claim on the bond. To accept the claim, the surety can work with the contractor, find a new contractor or issue payment.
- Payment Bonds
A payment bond guarantees that subcontractors, suppliers and other companies hired by the principal to work on the project will be paid. This type of bond benefits the owner as a substitute for a mechanic’s lien as an option for non-payment.
A bond claim is submitted to the surety company, which usually requires proof of outstanding payment and will investigate the claim. When a bond claim is denied, it is often related to a dispute (for example, between the contractor and the subcontractor).
Our experienced attorneys are familiar with the bond process and have a thorough knowledge of state and federal rules and regulations that impact the construction industry. We know how to work through complicated legal issues regarding bond claims and regularly help clients resolve construction disputes.
Focused on client relationships and measurable results
Our legal team investigate bond claims to get the facts. We gather evidence, carefully review documentation and depose witnesses to build a strong case that protects your interests. Our attorneys design a legal strategy to resolve your case in way that meets your needs. That may involve litigation, negotiating a settlement or using an alternative dispute resolution method such as mediation or arbitration.
We understand how an unresolved bond claim can affect your business. That’s why we work quickly and efficiently to limit your costs. Our focus is on helping clients find resolutions for their legal issues, not on billable hours.
Learn more about how our firm can help with disputes involving bond claims. Contact us to schedule an initial consultation at any one of our three office locations – Greenville, SC; Charlotte, NC and Charleston, SC.