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MS SB2243
Bill
AI Summary
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Raises the threshold for public works contracts exempt from performance and payment bond requirements from $25,000 to $50,000
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Changes the payment structure for bond-exempt contracts from a single lump sum payment at completion to two payments of 50% each of the contract amount
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Final payment still cannot be made until project completion and acceptance by the governing agency
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Applies to contracts with the state, counties, cities, political subdivisions, and other public authorities for construction, alteration, or repair of public buildings or public works
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Effective date: July 1, 2014
Legislative Description
Public works construction; performance bond is not required if contract is less than $50,000.00 and paid in two equal installments.
Last Action
Died In Committee
2/4/2014