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IN HB1293
Bill
Status
1/13/2015
Primary Sponsor
Micheal Aylesworth
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AI Summary
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Requires demolition contractors on public work contracts to furnish a performance bond equal to the contract price plus a reasonable estimate of salvage material value, regardless of the actual payment amount.
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Applies to all public work contracts involving building demolition and removal of demolition debris from the site.
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Allows performance bonds to be provided in incremental form through multiple or chronological bonds that together equal the contract price, with board consent.
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Mandates that surety on the performance bond cannot be released until one year after the board's final settlement with the contractor.
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Limits actions against a performance bond surety to one year after the board's final settlement, and specifies the surety cannot be discharged by contract modifications, defects, or procedural issues.
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Effective July 1, 2015.
Legislative Description
Performance bond for a demolition contractor. Provides that if a contractor enters into a public work contract with a political subdivision under which the contractor is to demolish a building and remove the demolition debris, the contractor is required to furnish a performance bond equal to the contract price plus, if applicable, a reasonable estimate of the value of any salvage materials to which the contractor will be entitled, regardless of the amount to be paid to the contractor under the contract.
Last Action
First Reading: referred to Committee on Local Government
1/13/2015