bond principal

Construction Bond Claims: What Happens When Performance or Payment Bonds Actually Get Claimed

Most construction bonds never see a claim — they sit in effect through project completion without activity. When claims happen, the process is specific: claimant files with the surety, surety investigates, surety responds (pay, deny, or negotiate), and if disputed, litigation follows. Understanding claim process helps subs and suppliers pursue claims effectively and helps principals prepare for the indemnity obligations claims trigger.