Find Legal Information

45A.435 Contract performance and payment bonds.

Download pdf

45A.435 Contract performance and payment bonds. (1) When a construction contract is awarded in an amount in excess of twenty-five thousand dollars (&#36;25,000), the following bonds shall be furnished to the local <br>public agency, and shall become binding on the parties upon the award of the <br>contract: <br>(a) A performance bond satisfactory to the local public agency executed by a surety company authorized to do business in this Commonwealth, or <br>otherwise supplied, satisfactory to the local public agency, in an amount equal <br>to one hundred percent (100%) of the contract price as it may be increased; <br>and (b) A payment bond satisfactory to the local public agency, executed by a surety company authorized to do business in this Commonwealth, or otherwise <br>supplied, satisfactory to the local public agency, for the protection of all <br>persons supplying labor and material to the contractor or his subcontractors <br>for the performance of the work provided for in the contract. The bond shall <br>be in an amount equal to one hundred percent (100%) of the original contract <br>price. (2) Nothing in this section shall be construed to limit the authority of the local public agency to require a performance bond or other security in addition to those bonds, <br>or in circumstances other than specified in subsection (1) of this section, including, <br>but not limited to, bonds for the payment of taxes and unemployment insurance <br>premiums. Effective: January 1, 1980 <br>History: Created 1978 Ky. Acts ch. 110, sec. 88, effective January 1, 1980.