Important: The contract or bond may impose different time periods and requirements than those set forth in Wisconsin Statute. All deadlines must be confirmed against the specific contract and bond documents, which govern in the event of any conflict with the statutory minimums described below.
Overview: Private vs. Public Project Bonds
Wisconsin law treats payment bonds differently depending on whether the project is privately owned or publicly owned. On private projects, there is no automatic right to a payment bond — bond rights depend entirely on the parties' contract and any bond the prime contractor voluntarily provides. On public projects, Wisconsin Statute §779.14 imposes mandatory payment provisions (and surety bonds on larger contracts) because public property generally cannot be liened.
In both contexts, missing the applicable notice or suit deadlines can permanently extinguish a claimant's bond rights. National Lien & Bond has helped contractors, subcontractors, and material suppliers navigate Wisconsin payment bond claims since 1986.
Private Projects
Bond rights depend on the parties' contract and bond agreement. A qualifying bond under §779.035 extinguishes subcontractor mechanic lien rights. The 60-day written notice and 1-year suit deadline are statutory minimums — the bond itself may impose stricter requirements.
Public Projects
Public property cannot be liened, so payment bonds are the primary remedy. Contracts of $10,000 or more must include payment provisions; contracts exceeding $75,000 require a surety bond in the full contract amount under §779.14(1e).
Private Project Bond Rights (§779.035)
There is no automatic right to a payment bond on a Wisconsin private project. Whether any bond rights exist depends on the parties' agreement. If the prime contractor furnishes a payment bond meeting the requirements of Wis. Stat. §779.035, that bond eliminates all subcontractor and supplier mechanic lien rights under §779.03(2). Claimants must then look exclusively to the bond for recovery.
To eliminate lien rights, the contract between the owner and the prime contractor must require the prime to pay all claims for labor, services, materials, plans, or specifications (excluding plans furnished by the owner's architect or engineer). The prime must then furnish a bond in an amount equal to the contract price, executed by a licensed surety.
60-Day Written Notice to Prime Contractor
Wis. Stat. §779.035(2)(b)1
A subcontractor or supplier must notify the prime contractor in writing within 60 days after the date on which work or materials were first performed or furnished. This notice is a condition precedent to maintaining a bond claim.
Notice is NOT required when:
- The contract for labor, services, or materials does not exceed $5,000
- The action is brought by an employee of the prime contractor, subcontractor, or supplier
- The subcontractor or supplier is listed in a written contract (or appended document) between the parties and the prime contractor
Additional Bond-Specific Notice Requirements
Beyond the 60-day statutory notice, the bonding agreement and contract often require notice of non-payment within a specified time after completion of work. There is no additional statutory form for this notice — the exact timing and content are dictated by the bond and contract documents, which must be reviewed carefully.
1-Year Statute of Limitations on Bond Claims
Wis. Stat. §779.035(2)
A party in interest has one year after completion of the construction contract to file an action on the private payment bond. Filing after this period is barred unless the claimant provides new notice to the prime contractor that they are providing labor, materials, or services (subject to the §779.035(2)(b) exceptions). If the bond amount is insufficient for all claims, proportional distribution applies.
Lien on Payment to Prime Contractor (§779.036)
In addition to (or instead of) a payment bond claim, a subcontractor or supplier may pursue a lien on funds still owed to the prime contractor — provided some unpaid balance remains in the owner's hands. This remedy is governed by Wis. Stat. §779.036.
Serve Notice on Owner and Mortgage Lender
The subcontractor or supplier must serve written notice of the lien claim on the owner and mortgage lender before payment is made to the prime contractor or subcontractor (§779.036(1)–(2)). A copy of the notice must also be served on the prime contractor or subcontractor within 7 days of the notice to the owner/lender.
30-Day Dispute Window / 3-Month Suit Deadline
Under §779.036(3), if the prime contractor does not dispute the claim within 30 days of service, the claimed amount must be paid to the claimant on demand. If the claim is disputed, the claimant must file suit within 3 months of service of the notice — but because the prime has 30 days to dispute, the effective suit window is approximately 2 months after the dispute is raised.
Proportional Payout — 20 Days / 6 Months Rule
If a subcontractor is owed more than what remains unpaid to the prime contractor, the lender may split claims into proportional shares and give written notice to all claimants (§779.036(4)(a)). In that event, all claimants must join an action within 20 days after mailing of the notice or within 6 months after completion of work, whichever is earlier.
Public Project Bond Rights (§779.14)
Public property in Wisconsin cannot be liened. As a result, payment bonds are the primary protection for subcontractors and suppliers on public construction projects. Whether a bond is required — and the size of that bond — depends on the contract value.
Contracts $10,000 or More
Payment Provision Required
The contract must include a provision requiring the prime contractor to pay all claims for labor, services, and materials. Wis. Stat. §779.14(1e).
Contracts Over $75,000
Surety Bond Required
The prime contractor must furnish a surety bond in the full amount of the contract to guarantee payment to all subcontractors and suppliers. Wis. Stat. §779.14(1e).
60-Day Notice to Prime Contractor
Wis. Stat. §779.14(2)(am)
A prospective claimant must provide written notice to the prime contractor within 60 days of first furnishing labor, services, or materials to preserve bond rights.
Exceptions — notice is NOT required when:
- The contract for labor, services, or materials does not exceed $5,000 (§779.14(2)(am)2.a)
- The action is brought by an employee of the prime, subcontractor, supplier, or service provider (§779.14(2)(am)2.b)
- The prime contractor has named the subcontractor, supplier, or service provider in its required list, in a written contract, or in any document appended to a written contract (§779.14(2)(am)2.c)
Commence Action Within 1 Year of Completion
Wis. Stat. §779.14(2)(a)
Any party in interest must file suit against the prime contractor and bond sureties no later than one year after completion of work under the contract. No express statutory notice of non-payment is required before filing suit. If the bond amount is insufficient to satisfy all claims in full, recovery is distributed among claimants proportionally.
Wisconsin Payment Bond — Quick Reference
| Deadline / Requirement | Private Project (§779.035 / §779.036) | Public Project (§779.14) |
|---|---|---|
| Bond Required? | No automatic right — depends on contract/bond agreement | Contracts ≥ $10,000 (payment provision); ≥ $75,000 (surety bond) |
| Effect of Bond on Lien Rights | Qualifying §779.035 bond extinguishes mechanic lien rights (§779.03(2)) | Public property cannot be liened — bond is primary remedy |
| 60-Day Written Notice | Within 60 days of first furnishing to prime contractor (§779.035(2)(b)1) | Within 60 days of first furnishing to prime contractor (§779.14(2)(am)) |
| Notice Exceptions | Contract ≤ $5,000; employee action; listed in written contract | Contract ≤ $5,000; employee action; listed by prime contractor |
| Additional Notice | Bond/contract may require non-payment notice — review documents | No express statutory non-payment notice required before suit |
| Suit Deadline on Bond | 1 year after completion of construction contract | 1 year after completion of work under the contract |
| Lien on Funds Notice | Serve owner + lender before payment to prime; copy to prime within 7 days (§779.036(1)-(2)) | See §779.15 (public works lien on funds) |
| Suit on Disputed Lien on Funds | 3 months from notice (effectively ~2 months after 30-day dispute period) | N/A (§779.14 governs public bond claims) |
| Proportional Payout Deadline | 20 days after mailing of notice OR 6 months after completion — whichever is earlier | Proportional if bond insufficient (§779.14(2)(b)) |
* Always confirm deadlines against the specific contract and bond documents, which may impose stricter requirements.
Frequently Asked Questions
Frequently Asked Questions
Is there an automatic right to a payment bond on Wisconsin private projects?
No. On private projects there is no automatic right to a payment bond. Whether a bond exists and how claims are made is determined entirely by the parties' contract and bond agreement. Always confirm whether a bond exists before assuming any bond rights.
Does a payment bond eliminate mechanic lien rights in Wisconsin?
Yes. Under Wis. Stat. §779.03(2), when the prime contractor furnishes a qualifying payment bond under §779.035, all subcontractor and supplier mechanic lien rights are extinguished. Claimants who would otherwise hold a lien must instead pursue their claim against the bond.
What is the 60-day notice requirement for Wisconsin private bond claims?
Under Wis. Stat. §779.035(2)(b)1, a subcontractor or supplier must notify the prime contractor in writing within 60 days after the date on which work or materials were first performed or furnished. Exceptions apply when: (a) the contract does not exceed $5,000; (b) the claimant is an employee of the prime, subcontractor, or supplier; or (c) the subcontractor or supplier is listed in a written contract or appended document between the parties and the prime contractor.
What is the statute of limitations for a Wisconsin private payment bond claim?
Under Wis. Stat. §779.035(2), a claimant has one year after completion of the construction contract to file an action on the bond. After this period, claimants must again notify the prime contractor that they are providing labor, materials, or services (unless a §779.035(2)(b) exception applies).
What is a lien on payment to the prime contractor in Wisconsin?
Under Wis. Stat. §779.036, a subcontractor or supplier may place a lien on funds still owed to the prime contractor. Notice must be served on the owner and mortgage lender before payment is made to the prime, with a copy served on the prime contractor within 7 days. If the prime does not dispute the claim within 30 days, the amount must be paid on demand. If disputed, the claimant must file suit within 3 months of the notice (effectively 2 months after the 30-day dispute window).
When is a payment bond required on Wisconsin public projects?
Under Wis. Stat. §779.14(1e), any public improvement or works contract of $10,000 or more must include a provision requiring the prime contractor to pay all claims for labor, services, and materials. If the contract exceeds $75,000, the prime must furnish a surety bond in the full amount of the contract.
What is the 60-day notice requirement for Wisconsin public payment bond claims?
Under Wis. Stat. §779.14(2)(am), prospective lienholders must provide written notice to the prime contractor within 60 days of first furnishing labor, services, or materials. Exceptions mirror those for private projects: contracts under $5,000, employee actions, or subcontractors listed in the prime's written contract or list maintained under §779.14(1e)(b).
What is the suit deadline for Wisconsin public project payment bond claims?
Under Wis. Stat. §779.14(2)(a), any party in interest must file suit against the prime contractor and bond sureties within one year after completion of work under the contract. If the bond amount is insufficient to satisfy all claims in full, distribution among claimants is proportional. Note that the contract or bond itself may impose shorter or different deadlines.
Related Wisconsin Construction Law Pages
Protect Your Wisconsin Payment Bond Rights
Missing the 60-day notice or 1-year suit deadline can permanently bar your claim. National Lien & Bond has protected construction receivables since 1986.