Bond Bits

• Contracts less than $25,000 are excluded from bond requirements.
• Amount of Bond: 100% of contract price except highway projects, 50% of contract price.
• P3 projects:  Payment bonds or an alternative form of security. 
• Claimants against General Contractors payment bond:  First and second tier subcontractors and suppliers.
• Suppliers to suppliers MAY have rights to claim but statute is not clear. Must be within above tiers.
• Retainage – Written notice of retainage claims must be served to the prime contractor and surety within 90 days of final completion of the project.

Owner’s agreement may include one or a combination of the following as an acceptable form of security: payment bonds, parent company guarantees, letters of credit or other satisfactory forms of security.