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45A.435 Contract performance and payment bonds.
(1)
(2)
When a construction contract is awarded in an amount in excess of twenty-five
thousand dollars ($25,000), the following bonds shall be furnished to the local
public agency, and shall become binding on the parties upon the award of the
contract:
(a) A performance bond satisfactory to the local public agency executed by a
surety company authorized to do business in this Commonwealth, or
otherwise supplied, satisfactory to the local public agency, in an amount
equal to one hundred percent (100%) of the contract price as it may be
increased; and
(b) A payment bond satisfactory to the local public agency, executed by a
surety company authorized to do business in this Commonwealth, or
otherwise supplied, satisfactory to the local public agency, for the
protection of all persons supplying labor and material to the contractor or
his subcontractors for the performance of the work provided for in the
contract. The bond shall be in an amount equal to one hundred percent
(100%) of the original contract price.
Nothing in this section shall be construed to limit the authority of the local
public agency to require a performance bond or other security in addition to
those bonds, or in circumstances other than specified in subsection (1) of this
section, including, but not limited to, bonds for the payment of taxes and
unemployment insurance premiums.
Effective:January 1, 1980
History: Created 1978 Ky. Acts ch. 110, sec. 88, effective January 1, 1980.
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