Our law firm represents hundreds of contractors who have supplied either goods or services in the the construction of real estate. This video and article explain what you need to know about collecting money owed to you using payment bond claims.
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On private jobs where the customer has yet to make payment, we recommend a Mechanics and Material-man’s Lien as the next course of action. However, you can not assert mechanics and material men’s liens on public property. Instead, the contractor must pursue payment bond claims.
Payment bonds are a collection remedy that involves four entities: claimant, principal, owner, and surety. In addition, the law requires payment bond claims on all projects that exceed a specific dollar amount.
The Parties of Payment Bond Claims
First, the claimant is the party that supplied the goods or services that the customer has not paid for. The principal is the general contractor who is managing the project. The owner is the owner of the questionable property. And finally, the surety is the insurance company that guarantees the general contractor’s performance on the job in exchange for premium payments.
The principal and the surety are liable to the unpaid contractor under the bond. The law calls this joint and several liability.
The Miller Act found in 40 USC Section 3131 governs payment bond claims on public projects. In Georgia, two Little Miller Acts govern public projects involving state-owned property. Similarly, the State Miller Act, found in OCGA 131060, governs State projects. And finally, the Little Miller Act found in OCGA 369190 governs county and municipal public projects. The requirements of these two acts are identical and are commonly referred to just as The Little Miller Acts.
Like mechanic’s liens, bond claims must adhere to the terms of the payment bond. This includes proceeding with the perfection of the bond claim suit within one year of the completion of the project. So, obtaining a copy of the payment bond is vital to review the terms.
Debt Collection Assistance
Having handled hundreds of payment bond claims, our office can help you find a copy of the bond as well as the perfection of the bond claim. However, the actual terms of the payment bond are mainly irrelevant to determining any payment bond coverage. The applicable payment bond statutes enacted in Georgia will overrule the bond’s provisions. So, contact one of our knowledgeable debt collection attorneys today to work on getting the money owed to you.
If you need legal representation for a debt collection case, you’ll want to ensure you choose a firm with experience. Working with a qualified legal team will help you avoid common mistakes and hassles and give you the best chance for a successful case. And, because collection lawsuits can be costly, it makes all the difference to have knowledgeable attorneys who have proven strategies to recover debts for your business as quickly as possible. At Howe & Associates Debt Collection Attorneys, we bring extensive experience and expertise to your case. Keep reading to learn more about the types of debt collection cases we handle.
Clients We Serve
Our firm provides representation for creditors and businesses that have performed services for credit and are dealing with nonpayment. The types of debt collection cases we handle include representation for the following clients:
- Suppliers
- Contractors
- Dentists
- Doctors
- Home service providers
- Mechanic’s lien work
- And more.
If you’ve provided services for a client who is not paying the debt, our attorneys can help.
How We Help with Mechanic’s Lien and Public Bond Cases
Among our areas of expertise are cases involving mechanic’s lien or materialman’s work. A mechanic’s lien is a legal claim brought against a home or property. When a supplier or subcontractor does not receive payment from the general contractor, the law allows the subcontractors to go after the general contractor and the property that received the services or supplies. The lien is a way to seek payment for property remodeling or other work. The supplier or subcontractor can file a mechanic’s or materialman’s lien within the first 90 days following the job.
The legal team at Howe & Associates Debt Collection Attorneys has in-depth knowledge and experience with the state of Georgia’s mechanic’s lien laws. We have represented thousands of lien and public bond cases. However, while the state’s mechanic lien laws are strong, there are strict deadlines subcontractors must follow when moving forward with a case.
A common complication with mechanic’s lien cases involves lien waivers. Our attorneys recommend you never sign a lien waiver until you contact our team first for legal advice.
Get Reliable Legal Representation for Your Debt Collection Case
If you are ready to proceed with your debt collection case, reach out to the team at Howe & Associates Debt Collection Attorneys. Since 1985, we’ve represented victims in a wide variety of debt collection cases. Let us guide you step-by-step through the legal process to ensure you meet all the deadlines and requirements to make your case successful. Hence, our attorneys provide qualified representation and will work diligently to get you the settlement you deserve.
So, contact Howe & Associates Debt Collection Attorneys today to learn more about the types of debt collection cases we handle or to request a free consultation.
Here is a good article to help you understand how mechanic’s liens work, and it offers good tips to prevent a bad relationship between you and the contractor. Sometimes things don’t work according to plan, and in those cases we’re here to help resolve the financial dispute.
Below the excerpt is a link to the full article.
Kansas City StarPrevent disputes with contractors from blowing upKansas City StarNot happy with a contractor’s work on your house? Watch out! If you refuse to pay the invoice, you risk having a mechanic’s lien attached to your property. A lien creates an interest in your property to secure the performance of an obligation — in …