§ 37-12-1 Contractors required to give
bond – Terms and conditions. –
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), 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 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.
(P.L. 1934, ch. 2105, § 1; P.L. 1938, ch. 2644, § 2; G.L. 1938, ch.
79, § 1; impl. am. P.L. 1939, ch. 660, § 100; impl. am. P.L. 1951,
ch. 2727, art 1, § 3; G.L. 1956, § 37-12-1; P.L. 1988, ch. 449,
§ 15; P.L. 1994, ch. 431, § 1; P.L. 1999, ch. 367, § 2; P.L.
2009, ch. 354, § 2.)