NC H1035

Increases the performance and payment bonding requirement threshold for state departments, state agencies, and the University of North Carolina from $300,000 to $500,000 for construction project contracts, while maintaining the $300,000 threshold for other contracting bodies.

Requires performance bonds equal to 100% of the construction contract amount to ensure faithful performance according to plans and specifications, protecting the contracting body.

Requires payment bonds equal to 100% of the construction contract amount to ensure prompt payment for labor and materials, protecting workers and suppliers.

Directs the Department of Administration's State Building Commission to simplify the prequalification process for publicly funded construction projects and report progress by December 31, 2010.

Requires the Department of Transportation, University of North Carolina, and Department of Administration to monitor and annually report on construction project defaults, costs to complete defaulted projects, and original contract prices beginning March 1, 2011.