Public Bond Claim--Gov Code 2253 Flashcards
When is a Performance Bond Required?
If the contract is in excess of $100,000
When id a Payment Bond Required?
(A) the contract is in excess of $25,000, and the governmental entity is not a municipality or a joint board created under Subchapter D, Chapter 22, Transportation Code; or
(B) the contract is in excess of $50,000, and the governmental entity is a municipality or a joint board created under Subchapter D, Chapter 22, Transportation Code.
Is the Governmental Entity responsible when a bond is not furnished?
Yes, claimant must give all the regular notice, expect instead they go to gov. entity not Surety.
Can you restrict of expand the statutory rights and obligations by contract?
No.
Bond Notice Requirements?
Written notice to Surety and GC with a SS. Can include copy of contract instead of notice along with sworn statement.
What must be in the Sworn Statement of Account?
(1) the amount claimed is just and correct; and
(2) all just and lawful offsets, payments, and credits known to the affiant have been allowed.
(d) The statement of account shall include the amount of any retainage applicable to the account that has not become due under the terms of the public work contract between the payment bond beneficiary and the prime contractor or between the payment bond beneficiary and a subcontractor.
What Must be in Written Notice if no Contract Exists?
(1) the name of the party for whom the public work labor was performed or to whom the public work material was delivered;
(2) the approximate date of performance or delivery;
(3) a description of the public work labor or material for reasonable identification; and
(4) the amount due.
(b) The payment bond beneficiary must generally itemize the claim and include with it copies of documents, invoices, or orders that reasonably identify:
(1) the public work labor performed or public work material delivered for which the claim is made;
(2) the job; and
(3) the destination of delivery.
Retainage Notice
must mail written notice of the claim to the prime contractor and the surety on or before the 90th day after the date of final completion of the public work contract.
(b) The notice shall consist of a statement of:
(1) the amount of the contract;
(2) any amount paid; and
(3) the outstanding balance.
Additional Retainage Notice Requirement for Second Tier Subs
15th day of the second month from beginning work to GC.
Additional Notice for Unpaid Progress Payments for Second Tier Subs
15th day of second month. A copy of the unpaid invoice is sufficient.
Specially Fabricated Materials Notice
15th of the second month from order to GC.
