Guest post by Danielle Rodabaugh, a writer at suretybonds.com

Even though contractors know they need to file surety bonds before they can begin work on many projects, they might still be confused about the potential legal implications that can be involved with the process.

The 90-day period for foreclosing on a mechanics lien under Civil Code § 3144 is tolled during the pendency of bankruptcy proceedings, pursuant to 11 U.S.C. § 108(c). 

In Pioneer Construction, Inc. v. Global Investment, Inc. et al. (December 21, 2011) Ca. 2nd. Dist. Ct. App. B225685, a construction company filed for foreclosure of mechanic's liens against defendants' property subsequent to defendants' purchase of the property at a trustee's sale during the prior owner's bankruptcy proceedings.  

There is a legal distinction between the contractual duty to defend and the duty to indemnify in a construction services contract between a developer and a contractor.