A. If a contractor who elected continuous bonding under § 54.1-1106 or 54.1-1108 fails to satisfy a judgment awarded by a court of competent jurisdiction for improper or dishonest conduct, the judgment creditor shall have a claim against the surety bond for such damages. In order to recover the amount of any unpaid judgment, up to but not exceeding the maximum liability as set forth in § 54.1-1106 or 54.1-1108, the judgment creditor shall meet the eligibility requirements of subsection A of § 54.1-1120 and bring suit directly on the surety bond no later than 12 months after the judgment becomes final.
B. The liability of such surety shall be limited to actual monetary loss, court costs, and attorney fees assessed against the contractor as part of the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the contractor.
C. The surety company shall notify the Board when a claim is made against a contractor's bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the contractor's surety upon 30 days' notice to the Board.
2017, c. 572.
Structure Code of Virginia
Title 54.1 - Professions and Occupations
§ 54.1-1101. Exemptions; failure to obtain certificate of occupancy; penalties
§ 54.1-1102. Board for Contractors membership; offices; meetings; seal; record
§ 54.1-1104. Register of applicants
§ 54.1-1106. Application for Class A license; fees; examination; issuance
§ 54.1-1106.1. Violations of certain State Board of Health regulations; penalty
§ 54.1-1106.2. Additional monetary penalty for certain violations
§ 54.1-1108. Application for Class B license; fees; examination; issuance
§ 54.1-1108.1. Waiver of examination; designated employee; Board regulations
§ 54.1-1108.2. Application for Class C license; fees; issuance
§ 54.1-1109. Expiration and renewal of license or certificate
§ 54.1-1110. Grounds for denial or revocation of license or certificate
§ 54.1-1110.1. Re-examination of designated employee
§ 54.1-1111. Prerequisites to obtaining business license; building, etc., permit
§ 54.1-1112. Invitations to bid and specifications to refer to law
§ 54.1-1113. Nonresident bidders to appoint statutory agent for service of process
§ 54.1-1114. Filing and hearing of charges
§ 54.1-1115.01. Responsibility for contracting with persons lacking the proper credential
§ 54.1-1115.1. Evidence of violation of the Virginia Uniform Statewide Building Code
§ 54.1-1120. Recovery from Fund generally
§ 54.1-1120.1. Recovery on bond
§ 54.1-1122. Consideration of applications for payment
§ 54.1-1123. Limitations upon recovery from Fund; certain actions not a bar to recovery
§ 54.1-1124. Participation by Board or Director in proceeding
§ 54.1-1125. Assignment of claimant's rights to Board; payment of claim
§ 54.1-1127. No waiver by Board of disciplinary action against regulant
§ 54.1-1129. Necessity for licensure
§ 54.1-1129.1. Certification of water well systems providers; continuing education
§ 54.1-1132. Expiration and renewal of license or certificate
§ 54.1-1133. Continuing education
§ 54.1-1141. Certification required; exemption
§ 54.1-1142. Issuance of certification; emergency certification
§ 54.1-1142.1. Certifications in event of declared emergency
§ 54.1-1142.2. Certifications in event of shortage of elevator mechanics
§ 54.1-1143. Continuing education
§ 54.1-1146. Additional powers of the Board