Don’t Want Sub & Supplier Liens–Require an Unconditional Payment Bond

If you are an owner of a private project and want to be sure that your property is exempt from construction liens from subcontractors and suppliers, then require your general contractor to furnish an unconditional payment bond.  Yes, as the owner, the premium for the payment bond will be passed up to you for reimbursement.  But, it is worth it as subcontractor and supplier liens will not be able to encumber your property.  If a subcontractor or supplier does record a construction lien, that lien can very easily be transferred to the payment bond by recording a Notice of Bond.

Remember, however, that the payment bond will not exempt your property from the general contractor’s construction lien (or the party that furnished you the payment bond). Thus, if there is a payment dispute with the general contractor, the general contractor can still lien your property and this lien will not be able to be transferred to the payment bond.


Please contact David Adelstein at or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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