What happens when the surety or the bonding company receives our notice of claim?
Within the time period prescribed by law or in the terms of the bond, the surety or bonding company must provide a written response to the claimant. Generally, the bonding company will send a written acknowledgement of its receipt of the notice of claim, together with a form entitled “Affidavit of Payment Bond Claim” or something similar. The affidavit form sent by the surety must be filled in, signed, notarized and returned to the surety. The information requested in the form includes the identification of the project, the owner and the general contractor or contractor who obtained the bond, and the amount claimed. The surety will also ask for documentation showing that the amount claimed is actually owed. The requested documentation may include copies of the contracts and subcontracts, purchase orders, manifests or logs of work, labor and materials provided, invoices, canceled checks, and a copy of the bond.
