A recorded lien tells the world that you have an interest in someone’s property. But that doesn’t stop the property owner from transferring the lien to some other form of security, such as a bond or cash.
Enter into a formal contract with any public authority for the construction or repair of a public building or structure or for performance of other public work and you will need to have a payment and performance bond in place, so say most state statutes.
During the course of a construction project there is always the possibility that a contractor may “walk off” the job, leaving the owner, subcontractors and material suppliers with a difficult and often expensive dilemma.
Too often in the law, great advancements are encountered by greater obstacles.
The American Institute of Architects produces contract and bond forms regularly utilized by the construction industry.
Good contracting practices, The contract documents, work defined, …