2019 -- H 5637

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- CONTRACTORS' BONDS

     

     Introduced By: Representatives Edwards, Canario, Phillips, Almeida, and Maldonado

     Date Introduced: February 27, 2019

     Referred To: House Finance

     (Dept. of Administration)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 37-12-1 of the General Laws in Chapter 37-12 entitled

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"Contractors' Bonds" is hereby amended to read as follows:

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     37-12-1. Contractors required to give bond -- Terms and conditions.

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     (a) Every person (which word for the purposes of this chapter shall include a

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copartnership, a number of persons engaged in a joint enterprise, or a corporation), before being

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awarded a contract by the department of transportation or by the department of administration, as

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the case may be, and every person awarded such a contract as a general contractor or construction

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or project manager for the construction, improvement, completion, or repair of any public road or

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portion thereof or of any bridge in which the contract price shall be in excess of fifty thousand

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dollars ($50,000) one hundred and fifty thousand dollars ($150,000), or for a contract for the

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construction, improvement, completion, or repair of any public building, or portion thereof, shall

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be required to furnish to the respective department a bond of that person to the state, with good

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and sufficient surety or sureties (hereafter in this chapter referred to as surety), acceptable to the

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respective department, in a sum not less than fifty percent (50%) and not more than one hundred

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percent (100%) of the contract price, conditioned that the contractor, principal in the bond, the

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person's executors, administrators, or successors, shall in all things, well and truly keep and

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perform the covenants, conditions, and agreements in the contract, and in any alterations thereof

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made as therein provided, on the person's part to be kept and performed, at the time and in the

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manner therein specified, and in all respects according to their true intent and meaning, and shall

 

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indemnify and save harmless the state, the respective department, and all of its officers, agents,

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and employees, as therein stipulated, and shall also promptly pay for all such labor performed or

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furnished, together with penalties assessed pursuant to ยง 37-13-14.1(b), and for all such materials

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and equipment furnished, (which, as to equipment, shall mean payment of the reasonable rental

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value, as determined by the respective department, of its use during the period of its use), as shall

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be used in the carrying on of the work covered by the contract, or shall see that they are promptly

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paid for, whether or not the labor is directly performed for or furnished to the contractor or is

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even directly performed upon the work covered by the contract, and whether or not the materials

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are furnished to the contractor or become component parts of the work, and whether or not the

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equipment is furnished to the contractor or even directly used upon the work. The bond shall

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contain the provisions that it is subject to all such rights and powers of the respective department

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and such other provisions as are set forth in the contract and the plans, specifications, and

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proposal incorporated by reference in the contract, and that no extension of the time of

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performance of the contract or delay in the completion of the work thereunder or any alterations

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thereof, made as therein provided, shall invalidate the bond or release the liability of the surety

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thereunder. Waiver of the bonding requirements of this section is expressly prohibited.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- CONTRACTORS' BONDS

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     This act would require that contractors awarded road and bridge construction projects by

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the department of transportation which have a contract price in excess of one hundred and fifty

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thousand dollars ($150,000) be required to furnish a bond equal to at least 50% of the contract

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price.

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     This act would take effect upon passage.

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