If Not Hired by the Original Contractor: If you were hired by anyone other than the Original Contractor, then you are required to serve the Original Contractor with a Notice of Retainage Agreement by no later than the 15th day of the second month from when you first provide labor, material, or equipment to the Project. The Notice must include at least the following information: (1) notice that your contract provides for the withholding of retainage; and (2) identification of the amount being retained. This is a required Notice which must be sent in addition to the notice described below.
All Claimants: All Claimants whose contract allows for the withholding of retainage until completion of the Project, must serve a Notice of Claim for Retainage on the Surety and the Original Contractor by no later than the 90th day after the date of final completion of the “Prime Contract” (the contract between the Public Entity and the Original Contractor) as a condition precedent to filing a Lawsuit to force the Surety to pay the retainage under the Payment Bond. The Notice must include at least the following information: (1) the amount of the overall contract; (2) any amounts paid; and (3) the outstanding balance owed under the contract.
How to Assert a Private or Public Payment Bond Claim in Texas