A Performance Bond Demand Letter is utilized when a contractor fails to meet their contractual obligations, requiring the project owner to seek compensation through the performance bond. This document is crucial in the United States construction and government contracting sectors, where performance bonds are often mandatory. The letter must detail the specific nature of the default, document damages, and comply with both federal legislation (such as the Miller Act) and state-specific requirements. It initiates the formal claim process against the surety company and typically includes supporting documentation to substantiate the claim.
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1. Date and Reference: Current date and any reference numbers for the bond and project
2. Addressee Details: Full details of the surety company, including correct legal name and address
3. Bond Information: Performance bond number, date, and amount
4. Project Details: Description of the underlying project and contract
5. Default Statement: Clear statement of the principal's default and breach of contract
6. Demand Amount: Specific amount being claimed under the bond
1. Prior Notices: Reference to any previous notices of default or communication
2. Cure Period Reference: Reference to expired cure periods and opportunities provided for remedy
3. Mitigation Efforts: Description of steps taken to minimize losses and damages
1. Copy of Performance Bond: Original or certified copy of the performance bond
2. Default Documentation: Evidence supporting the default claim including photographs, reports, and third-party assessments
3. Cost Documentation: Detailed breakdown of costs and damages being claimed with supporting invoices and calculations
4. Project Timeline: Schedule showing key dates and events leading to default
5. Prior Correspondence: Copies of relevant previous communications regarding the default
Relevant legal definitions
Performance Bond
Bond Number
Principal
Surety
Obligee
Contract
Project
Contract Sum
Default
Claim Amount
Demand Period
Notice
Cure Period
Contract Documents
Completion Date
Substantial Completion
Work
Damages
Loss
Supporting Documentation
Bond Amount
Effective Date
Breach
Remedial Actions
Project Site
Bond Number
Principal
Surety
Obligee
Contract
Project
Contract Sum
Default
Claim Amount
Demand Period
Notice
Cure Period
Contract Documents
Completion Date
Substantial Completion
Work
Damages
Loss
Supporting Documentation
Bond Amount
Effective Date
Breach
Remedial Actions
Project Site
Clauses
Identification of Parties
Bond Reference
Project Reference
Notice of Default
Default Description
Demand Statement
Claim Amount
Payment Terms
Documentation Reference
Time Requirements
Compliance Statement
Supporting Evidence
Notice Requirements
Governing Law
Response Period
Declaration of Truth
Authorization Statement
Signature Requirements
Bond Reference
Project Reference
Notice of Default
Default Description
Demand Statement
Claim Amount
Payment Terms
Documentation Reference
Time Requirements
Compliance Statement
Supporting Evidence
Notice Requirements
Governing Law
Response Period
Declaration of Truth
Authorization Statement
Signature Requirements
Relevant Industries
Relevant Teams
Relevant Roles
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