Chapter 354

2009 -- S 1024

Enacted 11/13/09

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES --

CONTRACTORS BONDS -- LABOR AND PAYMENT OF DEBTS BY CONTRACTORS

Introduced By: Senators Lenihan, Sheehan, C Levesque, Sosnowski, and E O`Neill

Date Introduced: June 24, 2009

It is enacted by the General Assembly as follows:

SECTION 1. Section 37-2-41 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

37-2-41. Contractors' bonds. -- The provisions of chapters 12 and 13 of this title

requiring contractors to furnish performance bonds and labor and material payment bonds shall

apply to all construction contracts awarded under this chapter. Waiver of the bonding

requirements contained in chapters 12 and 13 of this title is expressly prohibited.

SECTION 2. 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. -- 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.

SECTION 3. Section 37-13-14 of the General Laws in Chapter 37-13 entitled "Labor and

Payment of Debts by Contractors" is hereby amended to read as follows:

37-13-14. Contractor's bond. -- The state or any city, town, agency, or committee

therein awarding contracts for public works shall require the contractor awarded a contract with a

contract price in excess of fifty thousand dollars ($50,000) for public works to file with the proper

authority good and sufficient bond with surety furnished by any surety company authorized to do

business in the state, conditioned upon the faithful performance of the contract and upon the

payment for labor performed and material furnished in connection therewith, a bond to contain

the terms and conditions set forth in chapter 12 of this title, and to be subject to the provisions of

that chapter. Waiver of the bonding requirements of this section is expressly prohibited.

SECTION 4. This act shall take effect upon passage.

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LC02913

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