As a general contractor, if you receive a notice of nonpayment from a claimant that is preserving its rights under your payment bond, you can record a Notice of Contest of Claim Against Payment Bond. This is similar to a Notice of Contest of Lien. By recording this Notice of Contest in the official records, you are shortening the time frame for a claimant to file suit against your payment bond to 60 days from the date of service of the notice. This can have the effect of putting pressure on the payment bond claimant to determine whether they really want to file a lawsuit against your payment bond. For more information, please check here.
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