Lien Bonded Off – Surety Liable for Construction Contract Interest

When a bond is posted in lieu of a lien, the surety becomes liable for interest on late payments as stipulated in the construction contract, even though the surety was not a party to that contract.

The Construction Claims Advisor summary of this case is available to ConstructionPro Network members and includes:

• The citation for the case (case name, case number, and date filed)
• An overview of the case
• Background information about the case
• A summary of the ruling
• A summary of the court’s conclusion and the resulting outcome
• Editor's commentary
• A link to the complete PDF copy of the original opinion