Chapter 072 |
2019 -- S 0585 Enacted 06/28/2019 |
A N A C T |
RELATING TO PUBLIC PROPERTY AND WORKS -- CONTRACTORS' BONDS |
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. |
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LC001866 |
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