Here is the latest..
Had two suppliers that had not been paid and I chose to pay them off to avoid liens on my home. Put some pressure on contractor-he was able to reimburse me for one lien for around $3000. Checks cleared-yeah!
I put in claim against his bond for second lien of $13,500. His bond was $12,500 which is the standard size bond for contractors. I emailed all docs to Insurance company and they take the first 15 days to review my paperwork and contact the contractor to hear their side of the story. If no other claims filed in the next 30 days then Insurance company will send me the check for $12,500.
Lesson learned- at the first sign of an issue-immediately file a claim with the Insurance company and pray no other claims are filed within the 45 day period. If other valid claims are filed the proceeds will be distributed pro-rats. If a claim is filed after you receive the check- to bad for the other claimants as bond is exhausted. Thanks to all of you who helped guide me through this. If you have a job bigger than $12,500, I suggest either paying the suppliers/subs directly or getting an Unconditional Release of Lien from every sub or supplier or you bear the risk.
Over
