One of the good things about payment bonds, particularly Miller Act payment bonds or public payment bonds, is that if you are a claimant you can recover your out-of-pocket time impact costs. Whether the out-of-pocket expenses are the result of delay or lost productivity, these are costs that could be pursued against the payment bond surety.
Therefore, if you are subcontractor, supplier, or contractor and have a claim against a payment bond, keep in mind that there is a basis to recover your costs attributable to a delay or lost productivity. For this reason, it is important to ensure you are preserving your rights against the payment bond, especially if you are on a project where you have already incurred costs associated with a delay.
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