MS SB2905

Requires contractors entering into formal contracts valued at $1,000,000 or greater for private construction, alteration, or repair work to furnish a payment bond with a licensed Mississippi surety company.

Payment bond must be conditioned for prompt payment of all persons supplying labor, material, or equipment used in the work and must be in an amount not less than the contract value.

Persons who furnished labor or material and remain unpaid 90 days after their work completion may sue on the bond if they were not paid in full, provided contractual approvals were obtained or unreasonably withheld.

Subcontractors and material suppliers with no direct contract with the main contractor must provide written notice to the contractor within 90 days of their last work to maintain rights to sue on the payment bond.

Effective July 1, 2012, with protection extended only to subcontractors, material suppliers, sub-subcontractors, and laborers who performed work on the project site.