2019 -- H 5637

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LC001830

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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:

     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 § 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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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

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

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

price.

     This act would take effect upon passage.

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