Surety Transactions and Litigation | Shin Law Office
Performance Bond Claim Defense for Manassas Contractors
When a performance bond claim hits your construction business, it can feel like the ground has shifted beneath you.
One moment, you’re focused on completing a project; the next, you’re facing accusations of default, halted payments, and letters from a surety company demanding answers.
For contractors in Manassas and across Prince William County, these situations can escalate fast.
I’ve represented contractors who didn’t even realize how serious a surety claim was until their bonding capacity and their business were on the line.
Understanding What Happens When a Surety Calls the Bond
A performance bond is meant to protect project owners if a contractor fails to meet contractual obligations.
But in practice, it often feels like the system turns against you.
Once a claim is made, the surety steps in not as your advocate, but as a party seeking to protect its own financial exposure.
They may launch an investigation, demand extensive documentation, or even threaten to “take over” the project.
If you’ve never faced this before, it’s easy to feel powerless.
But you’re not. You have contractual and legal rights that can and should be exercised strategically.
Your First Step: Respond Quickly and Professionally
Don’t Ignore the Notice
The first and most common mistake I see contractors make is waiting too long to respond.
Performance bond claims are subject to strict notice and deadline requirements. Missing even one can weaken your defense.
As soon as you receive notice, gather your contract, project correspondence, change orders, progress reports, and payment records.
These documents will become your strongest evidence when you push back against exaggerated or unfounded claims.
Engage Counsel Early
I can’t emphasize this enough: the earlier you bring an attorney into the process, the stronger your position becomes.
Surety law is nuanced; every word in your contract and bond matters.
As your counsel, I evaluate whether the owner properly declared default, whether the surety followed required procedures, and whether you’ve already satisfied your obligations through substantial completion.
How I Approach Performance Bond Disputes
Step 1: Validate the Claim
The first thing I do is determine if the bond was triggered properly.
Many claims fail because the project owner didn’t comply with notice or opportunity-to-cure requirements.
If they skipped a step, we can argue that the surety’s obligations never arose in the first place.
Step 2: Control the Narrative
Once the surety begins investigating, your side of the story needs to be documented clearly, consistently, and persuasively.
I work with clients to prepare detailed responses that align with the facts and demonstrate your compliance, not your failure.
Step 3: Mitigate and Negotiate
Sureties are risk-averse. If I can show them a credible path to completion or dispute the owner’s assessment of damages, we can often resolve matters without litigation.
Sometimes, this means coordinating a completion plan; other times, it means pushing back on inflated damage claims or incorrect termination notices.
Step 4: Litigation Defense (When Necessary)
If negotiations fail and litigation becomes inevitable, I will build a defense based on the record we’ve established from day one.
My role is to protect your reputation, limit your financial exposure, and safeguard your bonding capacity so that this dispute doesn’t jeopardize your ability to win future projects.
Protecting Your Business Beyond the Claim
Review Your Contracts and Bond Forms
Not all performance bonds are created equal.
Some contain language that heavily favors owners.
As part of my counsel, I help clients review bond forms before signing, especially on public projects or high-value private developments.
Document Everything
In construction, documentation is your best defense. Keep detailed records of communications, site conditions, change requests, and inspection reports.
The stronger your paper trail, the harder it is for an owner or surety to distort the facts later.
Maintain Open Communication with the Surety
While it’s tempting to view the surety as the enemy, maintaining professionalism and transparency often leads to better outcomes.
The key is never to concede liability without counsel reviewing every word.
When Your Bond and Reputation Are on the Line
As a construction and surety litigation attorney, I’ve seen performance bond claims destroy companies that didn’t know how to respond.
But I’ve also helped many contractors turn the situation around recovering withheld payments, clearing their records, and protecting their ability to bid on new work.
If you’re a Manassas contractor facing a bond claim, don’t wait until the surety takes over your project.
The earlier you act, the more control you have.
Your reputation was built one project at a time. Let’s make sure one dispute doesn’t take it away.
Schedule a confidential consultation today.
Anthony I. Shin, Esq. | Principal Attorney | Shin Law Office
