45A.435 Contract performance and payment bonds.

225 words·~1 min read·/ky/chapter-45a/45a-435

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)When a construction contract is awarded in an amount in excess of one hundred

thousand dollars ($100,000), the following bonds shall be furnished to the local

public agency, and shall become binding on the parties upon the award of the

contract:

(a)A performance bond satisfactory to the local public agency executed by a

surety company authorized to do business in this Commonwealth, or

otherwise supplied, satisfactory to the local public agency, in an amount equal

to one hundred percent (100%) of the contract price as it may be increased;

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

supplied, satisfactory to the local public agency, for the protection of all

persons supplying labor and material to the contractor or his subcontractors

for the performance of the work provided for in the contract. The bond shall

be in an amount equal to one hundred percent (100%) of the original contract

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,

or in circumstances other than specified in subsection

(1)of this section, including,

but not limited to, bonds for the payment of taxes and unemployment insurance

premiums.