What happens when a there is a claim on a surety bond?
When a claim is made on a bond the surety must investigate the allegation of contractor default. The principal must cooperate with the surety and provide the information necessary for the surety to make a decision whether or not it must perform under the bond. For example, the surety will examine the validity of the bond, whether notice of default was proper, whether there were material alterations or changes in the scope of the contract or gross overpayments, among other information.
