12.44 - IOWA SATISFACTION AND PERFORMANCE BOND PROGRAM.
12.44 IOWA SATISFACTION AND PERFORMANCE BOND
PROGRAM.
Agencies of state government shall be required to waive the
requirement of satisfaction, performance, surety, or bid bonds for
targeted small businesses which are able to demonstrate the inability
of securing such a bond because of a lack of experience, lack of net
worth, or lack of capital. This waiver shall not apply to businesses
with a record of repeated failure of substantial performance or
material breach of contract in prior circumstances. The waiver shall
be applied only to a project or individual transaction amounting to
fifty thousand dollars or less, notwithstanding section 573.2. In
order to qualify, the targeted small business shall provide written
evidence to the department of inspections and appeals that the bond
would otherwise be denied the business. The granting of the waiver
shall in no way relieve the business from its contractual obligations
and shall not preclude the state agency from pursuing any remedies
under law upon default or breach of contract.
The department of inspections and appeals shall certify targeted
small businesses for eligibility and participation in this program
and shall make this information available to other state agencies.
Subdivisions of state government may also grant such a waiver
under similar circumstances. Section History: Recent Form
87 Acts, ch 233, § 129; 88 Acts, ch 1273, § 5; 90 Acts, ch 1156, §
1; 92 Acts, ch 1244, §10
Referred to in § 573.2