Know Your Contract The timing of bond claims on private developments can be tricky

摘要

A couple of recent cases from the Court of Appeal demonstrate the timing of filing bond claims for work performed on private developments can depend on technical issues that are out of the contractor's control. As background, in addition to the mechanic's lien right, which must be perfected within a very short time frame, sometimes there are payment bonds recorded to protect the owner or developer from liens. On private works, these bonds are more common with respect to work performed in the public right of way (i.e., street paving or utility work). Whether the work is a "public-" or a "private work" has a drastic difference in the statute of limitations for bringing a bond claim, as the right on a public work is roughly six months after completion as compared to a four-year limitations period on a private works bond.