IA SF2376

General contractors and subcontractors engaged in construction in Iowa must obtain and maintain an annual performance bond or irrevocable letter of credit in the amount of $50,000, payable to the state and executed by an authorized surety company or financial institution.

The bond or letter of credit must be filed with the state, and contractors cannot register, renew registration, or conduct business without meeting this requirement.

The state or political subdivisions may enforce these requirements for private construction work and bring actions on behalf of private persons or subdivisions harmed by a contractor's failure to perform contractual obligations.

Political subdivisions are prohibited from imposing additional bonding, licensing, or fee requirements on contractors for private construction work, except for work performed in public rights-of-way or as required by state or federal law.

The requirements do not apply to contractors performing work for the state or political subdivisions, including public projects subject to Chapter 8A, Subchapter III.