AR HB1855

Increases the threshold for public construction contracts requiring payment bonds from an amount stated in § 22-9-203 to $50,000.

Increases the threshold for religious and charitable organization construction contracts requiring payment bonds from $1,000 to $20,000.

Extends the statute of limitations for actions on payment bonds from six (6) months to one (1) year, measured from either final payment or when the principal contractor ceases work, whichever occurs first.

Adds a two (2) year statute of limitations for actions on performance bonds, measured from either final payment or when the principal contractor ceases work.

Requires contractors to file payment bonds with the circuit clerk before commencing construction work and prohibits payment until bonds are filed and a file-marked copy is provided to the party letting the contract.