MS HB496

Increases the threshold for public works contracts exempt from performance bond and payment bond requirements from $25,000 to $75,000, allowing owners to make lump-sum payments at project completion for contracts below this amount

Raises the threshold requiring general liability insurance proof from $25,000 to $75,000 for contracts with counties, cities, or other public authorities (state contracts retain the $5,000 threshold)

Requires general contractors to be liable for any insurance coverage shortfall when their subcontractors lack the required minimum $1,000,000 general liability insurance for bodily injury and property damage

Effective date is July 1, 2026