Legal Question in Construction Law in California

How long is a bonding company liable after project complition


Asked on 10/26/11, 11:19 am

1 Answer from Attorneys

I assume you mean on a performance bond, rather than a payment bond. In that case it depends on the contract and the nature of the liability. The bonding company's liability is derived from and co-extensive with the contractor's contractual liability. The statute of limitations is four years for breach of contract. There is a statutory minimum warranty on certain aspects of new or remodel construction of one year. There may be other warranties in the contract. So for warranty work, liability extends out as far as those warranties, plus four years to sue for any problems that arise within the warranty period. For non-warranty breaches of the contract, it is four years from the breach. Claims for negligence, and other non-contract claims are not covered by the bond.

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Answered on 10/26/11, 1:00 pm


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