MS HB1246

Exempts public works contractors on projects costing $50,000 or less from posting a performance bond if payments are made in two installments with the second payment made upon job completion and acceptance by the governing agency.

Allows owners to elect the two-installment payment option for contracts up to $50,000, with the final payment withheld until project completion and agency acceptance.

Retains existing exemption for contracts under $25,000 where owners may elect lump sum payment at completion without posting performance or payment bonds.

Maintains requirement for payment bonds on projects covered by the two-installment option, protecting subcontractors, material suppliers, and laborers.

Takes effect July 1, 2020.