PROFESSIONS,
VOCATIONS, AND BUSINESSES
CHAPTER 19
PUBLIC WORKS CONTRACTORS
54-1926.Performance and payment bonds required of contractors for
public buildings and public works of the state, political subdivisions
and other public instrumentalities -- Requirements for bonds -- Governmental
obligations. Before any contract for the construction, alteration, or repair of
any public building or public work or improvement of the state of
Idaho, or of any county, city, town, municipal corporation, township,
school district, public educational institution, or other political
subdivision, public authority, or public instrumentality, or of any
officer, board, commission, institution, or agency of the foregoing,
is awarded to any person, he shall furnish to the state of Idaho,
or to such county, city, town, municipal corporation, township, school
district, public educational institution, or other political subdivision,
public authority, or public instrumentality, or to such officer, board,
commission, institution, or agency thereof, bonds which shall become
binding upon the award of the contract to such person, who is hereinafter
designated as "contractor":
(1) A performance
bond in any amount to be fixed by the contracting body, but in no
event less than eighty-five percent (85%) of the contract amount conditioned
upon the faithful performance of the contract in accordance with the
plans, specifications and conditions thereof. Said bond shall be solely
for the protection of the public body awarding the contract.
(2) A payment
bond in an amount to be fixed by the contracting body but in no event
less than eighty-five percent (85%) of the contract amount, solely
for the protection of persons supplying labor or materials, or renting,
leasing, or otherwise supplying equipment to the contractor or his
subcontractors in the prosecution of the work provided for in such
contract.
(3) Public
bodies requiring a performance bond or payment bond in excess of fifty
percent (50%) of the total contract amount shall not be authorized
to withhold from the contractor or subcontractor any amount exceeding
five percent (5%) of the total amount payable as retainage. Further,
the public body shall release to the contractor any retainage for
those portions of the project accepted by the contracting public body
and the contractors as complete within thirty (30) days after such
acceptance. Contractors, contracting with subcontractors pursuant
to contract work with a public body, shall not be authorized to withhold
from the subcontractor any amount exceeding five percent (5%) of the
total amount payable to the subcontractor as retainage. The contractor
shall remit the retainage to the subcontractor within thirty (30)
days after completion of the subcontract.
Each bond shall be
executed by a surety company or companies duly authorized to do business
in this state, or the contractor may deposit any of the type of government
obligations listed in subsection (2)(h) of section 54-1901, Idaho
Code, in lieu of furnishing a surety company performance or payment
bond or bonds. In the case of contracts of the state or a department,
board, commission, institution, or agency thereof the aforesaid bonds
shall be payable to the state, or particular state agency where authorized.
In case of all other contracts subject to this chapter, the bonds
shall be payable to the public body concerned. Said bonds shall be
filed in the office of the department, board, commission, institution,
agency or other contracting body awarding the contract.
Nothing in this section
shall be construed to limit the authority of the state of Idaho or
other public body hereinabove mentioned to require a performance bond
or other security in addition to these, or in cases other than the
cases specified in this chapter.
It shall be illegal
for the invitation for bids, or any person acting or purporting to
act, on behalf of the contracting body to require that such bonds
be furnished by a particular surety company, or through a particular
agent or broker.
Idaho Statutes