You file a payment bond claim when a contractor or supplier has not paid you for work or materials you provided on a construction project.
A payment bond is a may provide posted by a contractor to ensure that workers, subcontractors, and material suppliers get paid even if the contractor runs out of money or disappears. If you have done work or delivered materials and have not been paid after a reasonable time, you can file a claim against that bond instead of suing the contractor directly.
The timing matters. Most payment bond claims must be filed within a specific window—often 90 days from your last day of work or delivery, though this varies by the type of project and the bond itself. Missing that deadline usually means you lose the right to claim against the bond, even if you are still owed money.
Key Takeaways
- Payment bond claims are filed when a contractor has not paid you for work or materials on a construction project, and you want to recover from the bond instead of suing.
- The deadline to file is typically 90 days from your last work or delivery date, but some bonds allow up to one year—check your contract and the bond document itself.
- You must have a direct contract with the contractor or be a supplier to the contractor; claims from workers hired by subcontractors may have different rules depending on the bond type.
- Filing requires written notice to the contractor and the bond company, along with documentation of the work performed, materials delivered, and the unpaid amount.
- Payment bonds on public projects (government contracts) have stricter rules and shorter deadlines than bonds on private construction projects.
Who can file a payment bond claim
You can file a claim if you are a contractor, subcontractor, worker, or material supplier who has a direct contract with the contractor or who supplied goods or services to the contractor. The contractor is the party who posted the bond and is responsible for paying you.
If you were hired by a subcontractor rather than the general contractor, your right to claim against the bond depends on the bond type. On public projects (government-funded construction), workers and suppliers hired by subcontractors can usually file claims. On private projects, the bond may limit claims to those with a direct contract with the general contractor only. Check the bond document or ask the bond company which parties can claim.
Laborers and workers who were paid in full but whose employer (the contractor) failed to pay taxes or insurance on their behalf cannot file a payment bond claim for those unpaid taxes. Payment bonds cover unpaid wages for work performed, not employer obligations.
Deadlines for filing a payment bond claim
The deadline is the single most important rule. On public projects, the deadline is typically 90 days from the date you last performed work or delivered materials. Some states or bond companies allow up to one year, but 90 days is the federal standard for projects funded by the federal government.
On private projects, the deadline is set by the bond document itself and can range from 90 days to one year or longer. You must read the bond to know your deadline. If the bond does not specify a deadline, state law may impose one—often 90 days to one year from your last work date.
The deadline is not negotiable and is not extended by the contractor's promise to pay later or by ongoing disputes. Once the deadline passes, you lose the right to claim against the bond. If you are unsure of the exact date your work ended or materials were last delivered, file your claim before the deadline and let the bond company sort out the dates.
What you need to file a claim
You must send written notice to both the contractor and the bond company. Email, certified mail, or hand delivery all work, but you need proof that the notice was received. Include your name, address, phone number, and the project name and location.
Attach documentation showing what you did or delivered and how much you are owed. This can include invoices, purchase orders, delivery receipts, timesheets, photographs of work performed, or a detailed written description of the labor or materials. If you have been paid in part, show the total amount owed and the amount already received.
Include the contractor's name and the name of the bond company if you know it. If you do not know the bond company, the contractor or the project owner should be able to tell you. Some projects post bond information on a public notice board at the job site.
How payment bond claims work on public versus private projects
Public projects (funded by federal, state, or local government) are governed by the Miller Act (federal) or similar state laws. These bonds have strict rules: deadlines are usually 90 days, notice must be in writing, and the bond company cannot deny a claim based on technicalities if the core facts are clear. Public project bonds are also larger and more likely to have funds available.
Private projects are governed by the bond document itself and state contract law. The bond company has more flexibility to deny claims, and deadlines can vary widely. Private bonds may also be smaller or may have already been depleted by earlier claims. Before filing, ask the bond company whether funds remain available on the bond.
On both types of projects, the bond company will investigate your claim. They will contact the contractor, review your documentation, and decide whether to pay. This process typically takes 30 to 90 days. If the bond company denies your claim, you can still sue the contractor directly, but you will be starting from scratch and will need to prove your case in court.
What happens after you file
The bond company will send you a written response acknowledging receipt of your claim. They may ask for additional documentation or clarification. Respond promptly and provide whatever they request.
If the bond company approves your claim, they will pay you directly. Payment usually comes within 30 to 60 days of approval, though the bond document may specify a different timeline. The bond company may also pay the contractor and let the contractor pay you, but this is less common.
If the bond company denies your claim, they must provide a written reason. Common reasons include: you missed the deadline, you do not have a direct contract with the contractor (on a private project), your documentation does not support the amount claimed, or the bond has been exhausted by earlier claims. If you disagree with the denial, you can sue the bond company or the contractor, but you will need an attorney and the case will take months or years.
Common reasons claims are denied
The most common reason is a missed deadline. If you file even one day late, the bond company will deny the claim. The second most common reason is lack of documentation—if you cannot prove what you did or how much you are owed, the claim will be denied or reduced.
On private projects, claims are sometimes denied because the claimant does not have a direct contract with the contractor. If you were hired by a subcontractor and the bond does not cover subcontractor workers, you will be denied. On public projects, this is less likely to be a barrier.
Claims are also denied if the bond has already been exhausted by earlier claims. Payment bonds have a limit (the bond amount), and once that limit is reached, no more claims can be paid. If you are the fifth claimant and the bond was only large enough to pay the first three, you will be denied, even if your claim is valid.
Frequently Asked Questions
What is the difference between a payment bond and a performance bond?
A performance bond guarantees that the contractor will finish the work. A payment bond guarantees that workers and suppliers will be paid. They are separate bonds, and a payment bond claim does not depend on whether the contractor finished the work—only on whether you were paid for what you did.
Can I file a payment bond claim if the contractor is still working on the project?
Yes. You do not have to wait for the project to be finished. If you have completed your portion of the work and have not been paid, you can file a claim. The deadline still runs from your last work date, not from the project completion date.
What if the contractor says they will pay me next week—should I wait before filing a claim?
Do not wait. File your claim before the deadline passes. You can always withdraw the claim if the contractor pays you, but once the deadline expires, you cannot file. A contractor's promise to pay is not a legal reason to extend the deadline.
Do I need an attorney to file a payment bond claim?
You can file on your own if you have clear documentation and meet the deadline. Many bond companies will work with you directly. An attorney is useful if the bond company denies your claim or if the amount is large, but it is not required to file the initial claim.
What if I do not know the name of the bond company?
Ask the contractor, the project owner, or the general contractor. On public projects, the bond information is usually posted at the job site or available from the government agency funding the project. If you cannot find it, send your notice to the contractor and the project owner, and they can forward it to the bond company.