Chapter 072
2019 -- S 0585
Enacted 06/28/2019

A N   A C T

Introduced By: Senators Lawson, Felag, Conley, Lombardo, and Lombardi
Date Introduced: March 14, 2019

It is enacted by the General Assembly as follows:
     SECTION 1. Section 37-12-1 of the General Laws in Chapter 37-12 entitled
"Contractors' Bonds" is hereby amended to read as follows:
     37-12-1. Contractors required to give bond -- Terms and conditions.
     (a) Every person (which word for the purposes of this chapter shall include a
copartnership, a number of persons engaged in a joint enterprise, or a corporation), before being
awarded a contract by the department of transportation or by the department of administration, as
the case may be, and every person awarded such a contract as a general contractor or construction
or project manager for the construction, improvement, completion, or repair of any public road or
portion thereof or of any bridge in which the contract price shall be in excess of fifty thousand
dollars ($50,000) one hundred and fifty thousand dollars ($150,000), or for a contract for the
construction, improvement, completion, or repair of any public building, or portion thereof, shall
be required to furnish to the respective department a bond of that person to the state, with good
and sufficient surety or sureties (hereafter in this chapter referred to as surety), acceptable to the
respective department, in a sum not less than fifty percent (50%) and not more than one hundred
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 therein provided, on the person's part to be kept and performed, at the time and in the
manner therein specified, and in all respects according to their true intent and meaning, and shall
indemnify and save harmless the state, the respective department, and all of its officers, agents,
and employees, as therein stipulated, and shall also promptly pay for all such labor performed or
furnished, together with penalties assessed pursuant to ยง 37-13-14.1(b), and for all such materials
and equipment furnished, (which, as to equipment, shall mean payment of the reasonable rental
value, as determined by the respective department, of its use during the period of its use), as shall
be used in the carrying on of the work covered by the contract, or shall see that they are promptly
paid for, whether or not the labor is directly performed for or furnished to the contractor or is
even directly performed upon the work covered by the contract, and whether or not the materials
are furnished to the contractor or become component parts of the work, and whether or not the
equipment 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 and powers of the respective department
and such other provisions as are set forth in the contract and the plans, specifications, and
proposal incorporated by reference in the contract, and that no extension of the time of
performance of the contract or delay in the completion of the work thereunder or any alterations
thereof, made as therein provided, shall invalidate the bond or release the liability of the surety
thereunder. Waiver of the bonding requirements of this section is expressly prohibited.
     SECTION 2. This act shall take effect upon passage.