34-223. Payment bond provisions

488 words·~2 min read·/az/title-34/34-223

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Every claimant who has furnished labor or material in the prosecution of the work provided for in a contract for which a payment bond is furnished under section 34-222, and who has not been paid in full for the labor or material for the work before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by the claimant or material was furnished or supplied by the claimant for which the claim is made, shall have the right to sue on the payment bond for the amount, or the balance of the amount, unpaid at the time of institution of the suit and to prosecute the action to final judgment for the sum or sums justly due the claimant, and have execution thereon, provided however that any claimant who has a direct contractual relationship with a subcontractor of the contractor furnishing the payment bond but not a contractual relationship express or implied with the contractor has a right of action on the payment bond on giving the contractor the following notices:

1. A written preliminary twenty-day notice, as provided for in section 33-992.01, subsection C, paragraphs 1, 2, 3 and 4 and subsections E, F and H.

2. A written ninety-day notice given within ninety days after the date on which the claimant performed the last of the labor or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. The ninety-day notice shall be given by any means that provides written, third-party verification of delivery to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence.

B. Every suit instituted under this section shall be brought in the name of the claimant but no such suit shall be commenced after the expiration of one year after the date on which the last of the labor was performed or materials were supplied by the person bringing this suit.

C. On written application, the contracting body and the agent in charge of its office shall furnish to any person that states the person has supplied labor or materials for the work, and payment for the labor or materials for the work has not been made, or is being sued on the bond, or is the surety on the bond, a certified copy of the bond and the contract for which the bond was given. The copy is prima facie evidence of the contents, execution and delivery of the original. Applicants shall pay for the certified copies and the reasonable fees that the contracting body or the agent in charge of its office fixes to cover the actual cost of preparation of the certified copies.