Getting paid for work on a construction project starts with knowing whether it falls under private construction or public construction (also called public works). This distinction is important because the rules for collecting payment depend on the type of project.
For private construction projects, contractors and suppliers can use the mechanic’s lien process to secure payment. However, for public works projects—which include schools, roads, bridges, universities, government buildings, and public utilities—lien rights do not apply. Instead, payment bond requirements for public construction projects ensure that subcontractors and material suppliers have a way to recover unpaid invoices.
Before work begins, the general contractor (also known as the prime contractor) is typically required to obtain a payment bond. This bond acts as a financial guarantee, ensuring that all parties involved—from subcontractors to material suppliers—receive proper payment. Understanding these bonds and how to make a bond claim is essential for protecting your rights on public projects.
Understanding Performance and Payment Bonds in Public Construction
In public construction projects, securing payment for work performed requires a different process than in private jobs. Since public property cannot be subject to a mechanic’s lien, performance and payment bonds serve as a financial guarantee that contractors, subcontractors, and material suppliers will be compensated.
A payment bond is issued by a surety company, which acts as a third-party financial backer. If the prime contractor fails to pay for furnished labor or supplied materials, the bonding company steps in to cover the debt. By using this system, the public agency that owns the project—such as a city, state, or federal government—avoids getting entangled in non-payment disputes or legal claims.
Similarly, a performance bond guarantees that the construction company will complete the work according to the terms of the original contract price. If the contractor defaults, the surety provider arranges for the project’s completion, protecting both the public entity and the parties involved.
These bonding requirements help keep public works projects on track, ensuring that everyone—from general contractors to material suppliers—can focus on the job without worrying about payment obligations.
How to File a Claim Against a Performance Bond in Texas
A Texas payment bond claim is how a subcontractor, sub-subcontractor, or material supplier communicates that the work agreed to in a contract (oral or written) has been completed, but the payment has not been made. The surety (bonding company) is now liable for that debt. Like the mechanic’s lien, the Texas bond claim comes with specific deadline and form requirements, including notices and a sworn statement of account.
Essential Information for Filing a Texas Payment Bond Claim
Filing a payment bond claim is much smoother when you have the right details prepared in advance. Gathering this information at the start of every public works project helps streamline the bonding process, reducing delays and ensuring you receive proper payment as quickly as possible.
Before submitting your claim, make sure you have the following details ready:
- Project Information – The name and address of the construction project. A full legal description is not required.
- General (Prime) Contractor Details – The contractor’s name and mailing address, the amount owed, any retainage amount, and whether the agreement was written or oral.
- Surety Information – The surety company’s name and address, as well as the bond number (if available). If you don’t have the bond number, you can still file as long as you provide the correct surety provider details.
- Invoices & Work Description – A breakdown of unpaid work performed, including invoices and the amount owed for each month individually.
Having these details on hand from the beginning of a public construction project helps ensure a smooth payment recovery process, allowing you to meet deadlines, avoid disputes, and secure the compensation you’re owed.
Deadlines for Filing Texas Bond Claims
Filing a Texas payment bond claim involves strict bonding requirements, and missing a time period can mean losing your right to proper payment. The deadlines follow a process similar to a mechanic’s lien but with specific rules based on your role in the project.
Bond Claim Deadlines for Subcontractors
- Primary subcontractors must send a sworn statement of account along with a bond claim notice by the 15th day of the third month following the month in which the work was performed or materials were supplied.
Bond Claim Deadlines for Sub-Subcontractors and Material Suppliers
- If you are a sub-subcontractor or a material supplier working for a first-tier subcontractor, you must send an early notice (second-month notice) to the general contractor before sending the claim to the surety company.
- This second-month notice should include:
- A copy of your outstanding invoices
- A signed cover letter detailing the amounts unpaid
Lawsuit Filing Deadlines
- If the claim remains unpaid for 60 days after submission, you can file suit against the surety provider and the contractor’s ability to pay through the bonding company.
- The lawsuit must be filed within one year from the date the claim was perfected if the bond was recorded at the time the lien was filed. If the bond was not recorded, you have two years to file suit.
Since deadlines can vary based on the public entity overseeing the project, it’s essential to track all payment obligations carefully. Sending certified mail with return receipt requested helps document compliance with Texas bond claim rules, reducing the risk of a dispute.
How to File a Construction Bond Claim
Filing a Texas payment bond claim correctly is essential for securing the proper payment you’re owed. To ensure a smooth process, follow these key steps:
- Prepare Your Sworn Statement of Account
- Detail the amount owed, the work performed, and the construction project details.
- Ensure all invoices and supporting documents are accurate.
- Notarize the Sworn Statement
- Texas law requires that the sworn statement of account be notarized before submission.
- If using an online notary service, confirm it meets state requirements.
- Send the Bond Claim Notice
- Mail the notarized statement and bond claim notice to:
- The general contractor (or prime contractor)
- The surety provider (the insurance company that issued the payment bond)
- Use certified mail with return receipt requested to track delivery.
- Mail the notarized statement and bond claim notice to:
- Monitor Your Claim Status
- Most bonding companies and general contractors resolve payment disputes once a valid claim is received.
- If payment is delayed, follow up with both the surety company and the bonding agent.
- Take Legal Action If Necessary
- If the claim remains unpaid after 60 days, you may need to file suit against the bond.
- The time period to file a lawsuit is one year from the date the bond claim notice was submitted. If the bond was not recorded, the deadline extends to two years.
By following these steps, you increase the chances of receiving full compensation without unnecessary delays. Keeping detailed records of all communication, contract terms, and payment obligations will help protect your rights throughout the bonding process.
How Online Lien and Bond Claim Services Simplify the Process
Filing a payment bond claim can be time-consuming and complicated, especially when dealing with strict payment bond requirements for public construction projects. Fortunately, modern online lien and bond claim services make the process faster, easier, and more affordable—allowing contractors, subcontractors, and material suppliers to secure their payments with minimal hassle.
Save Time with Automated Document Preparation
Traditional bonding processes often require extensive paperwork, legal knowledge, and in-person visits to notaries and county offices. Online platforms eliminate these steps by guiding you through automated document preparation, ensuring all required notices, affidavits, and payment bond claims are correctly formatted and legally compliant.
E-Notarization and Filing in Minutes
Instead of scheduling a notary appointment or physically submitting documents, online services provide e-notarization and electronic filing options. You can complete the process in minutes, reducing delays and ensuring that your claim is officially recorded without unnecessary trips to government offices.
Compliance with Texas Bonding Requirements
Texas has specific bonding requirements for public projects, and missing a time period or misfiling paperwork can cause a claim to be denied. Online services ensure compliance with the Texas Property Code, sending certified mail with return receipt requested and tracking deadlines so you don’t have to.
Affordable and Transparent Pricing
Hiring a surety broker or construction attorney can be expensive, especially for small businesses and independent contractors. Online platforms provide flat-rate pricing, allowing you to file a bond claim or lien for a fraction of the cost while still ensuring proper payment protection.
Instant Access to Property and Surety Information
Locating details like surety company names, bond numbers, and project owner information can slow down the filing process. Online tools provide real-time access to public records and construction payment bond databases, ensuring you have the correct information before submitting a claim.
Secure Your Payment with Less Stress
Whether you’re a contractor, subcontractor, or material supplier, using an online lien filing service helps protect your financial security without the complexity of traditional claims. By streamlining the bonding process, these platforms make it easier to file payment bond claims, track deadlines, and enforce your payment obligations—so you can focus on your construction projects instead of chasing overdue invoices.
Although the process to file a construction payment bond may seem complicated, Texas Easy Lien provides all of the information, legal documents, online notarization, and e-filing necessary to pursue a bond claim quickly, easily, and affordably. Just answer a few simple questions to get started, and you will soon be on your way to recovering the money you’re owed.
Please note that these rules only apply to domestic government projects in the State of Texas and do NOT apply to federal construction projects such as at places like Ft. Hood.
