It should go without saying that contractors, subcontractors or suppliers deserve compensation for the services performed or goods supplied.
At Davagian Grillo & Semple LLP, we can help you get the money you are owed, whether it is from a public or a private owner. Contact our Boston bond claim attorneys today to schedule a free initial consultation.
Understanding Payment And Performance Bonds
Under Massachusetts law, payment and performance bonds are required on public projects, largely because property liens cannot be placed on public property. Private owners may also require both payment and performance bonds on major nonprofit or commercial projects of significant size.
Performance bonds ensure compliance with the contractual provisions in the course of performance of the project. They can be used to protect owners in the event that the general contractor runs into financial difficulty and is unable to finish the project, or in cases where the work performed is substandard, making it necessary to replace the general contractor.
In contrast, a payment bond protects the owner when a general contractor is not paying subcontractors and suppliers — the bond provides insurance to owners if the general contractor doesn't pay, the bonding company will pay.
A similar set of bonds may exist between a subcontractor and a general contractor, so that the general contractor is protected in the event the subcontractor does not pay the suppliers.
Contact our Massachusetts lawyers at our Sudbury offices today for a free initial consultation.