§ 37-12-1 - Contractors required to give bond – Terms and conditions.
SECTION 37-12-1
§ 37-12-1 Contractors required to givebond – Terms and conditions. – Every person (which word for the purposes of this chapter shall include acopartnership, a number of persons engaged in a joint enterprise, or acorporation), before being awarded a contract by the department oftransportation or by the department of administration, as the case may be, andevery person awarded such a contract as a general contractor or construction orproject manager for the construction, improvement, completion, or repair of anypublic road or portion thereof or of any bridge in which the contract priceshall be in excess of fifty thousand dollars ($50,000), or for a contract forthe construction, improvement, completion, or repair of any public building, orportion thereof, shall be required to furnish to the respective department abond of that person to the state, with good and sufficient surety or sureties(hereafter in this chapter referred to as surety), acceptable to the respectivedepartment, in a sum not less than fifty percent (50%) and not more than onehundred percent (100%) of the contract price, conditioned that the contractor,principal in the bond, the person's executors, administrators, or successors,shall in all things, well and truly keep and perform the covenants, conditions,and agreements in the contract, and in any alterations thereof made as thereinprovided, on the person's part to be kept and performed, at the time and in themanner therein specified, and in all respects according to their true intentand meaning, and shall indemnify and save harmless the state, the respectivedepartment, and all of its officers, agents, and employees, as thereinstipulated, and shall also promptly pay for all such labor performed orfurnished and for all such materials and equipment furnished, (which as toequipment shall mean payment of the reasonable rental value, as determined bythe respective department, of its use during the period of its use), as shallbe used in the carrying on of the work covered by the contract, or shall seethat they are promptly paid for, whether or not the labor is directly performedfor or furnished to the contractor or is even directly performed upon the workcovered by the contract, and whether or not the materials are furnished to thecontractor or become component parts of the work, and whether or not theequipment is furnished to the contractor or even directly used upon the work.The bond shall contain the provisions that it is subject to all such rights andpowers of the respective department and such other provisions as are set forthin the contract and the plans, specifications, and proposal incorporated byreference in the contract, and that no extension of the time of performance ofthe contract or delay in the completion of the work thereunder or anyalterations thereof, made as therein provided, shall invalidate the bond orrelease the liability of the surety thereunder. Waiver of the bondingrequirements of this section is expressly prohibited.