2005 Idaho Code - 54-1926 — PERFORMANCE AND PAYMENT BONDS REQUIRED OF CONTRACTORS FOR PUBLIC BUILDINGS AND PUBLIC WORKS OF THE STATE, POLITICAL SUBDIVISIONS AND OTHER PUBLIC INSTRUMENTALITIES -- REQUIREMENTS FOR BONDS -- GOVERNMENTAL OBLIGATIONS

                                  TITLE  54
                    PROFESSIONS, VOCATIONS, AND BUSINESSES
                                  CHAPTER 19
                           PUBLIC WORKS CONTRACTORS
    54-1926.  PERFORMANCE AND PAYMENT BONDS REQUIRED OF CONTRACTORS FOR PUBLIC
BUILDINGS AND PUBLIC WORKS OF THE STATE, POLITICAL SUBDIVISIONS AND OTHER
PUBLIC INSTRUMENTALITIES -- REQUIREMENTS FOR BONDS -- GOVERNMENTAL
OBLIGATIONS. Before any contract for the construction, alteration, or repair
of any public building or public work or improvement of the state of Idaho, or
of any county, city, town, municipal corporation, township, school district,
public educational institution, or other political subdivision, public
authority, or public instrumentality, or of any officer, board, commission,
institution, or agency of the foregoing, is awarded to any person, he shall
furnish to the state of Idaho, or to such county, city, town, municipal
corporation, township, school district, public educational institution, or
other political subdivision, public authority, or public instrumentality, or
to such officer, board, commission, institution, or agency thereof, bonds
which shall become binding upon the award of the contract to such person, who
is hereinafter designated as "contractor":
    (1)  A performance bond in any amount to be fixed by the contracting body,
but in no event less than eighty-five percent (85%) of the contract amount
conditioned upon the faithful performance of the contract in accordance with
the plans, specifications and conditions thereof. Said bond shall be solely
for the protection of the public body awarding the contract.
    (2)  A payment bond in an amount to be fixed by the contracting body but
in no event less than eighty-five percent (85%) of the contract amount, solely
for the protection of persons supplying labor or materials, or renting,
leasing, or otherwise supplying equipment to the contractor or his
subcontractors in the prosecution of the work provided for in such contract.
    (3)  Public bodies requiring a performance bond or payment bond in excess
of fifty percent (50%) of the total contract amount shall not be authorized to
withhold from the contractor or subcontractor any amount exceeding five
percent (5%) of the total amount payable as retainage. Further, the public
body shall release to the contractor any retainage for those portions of the
project accepted by the contracting public body and the contractors as
complete within thirty (30) days after such acceptance. Contractors,
contracting with subcontractors pursuant to contract work with a public body,
shall not be authorized to withhold from the subcontractor any amount
exceeding five percent (5%) of the total amount payable to the subcontractor
as retainage. The contractor shall remit the retainage to the subcontractor
within thirty (30) days after completion of the subcontract.
    Each bond shall be executed by a surety company or companies duly
authorized to do business in this state, or the contractor may deposit any of
the type of government obligations listed in subsection (2)(h) of section
54-1901, Idaho Code, in lieu of furnishing a surety company performance or
payment bond or bonds. In the case of contracts of the state or a department,
board, commission, institution, or agency thereof the aforesaid bonds shall be
payable to the state, or particular state agency where authorized. In case of
all other contracts subject to this chapter, the bonds shall be payable to the
public body concerned.
    Said bonds shall be filed in the office of the department, board,
commission, institution, agency or other contracting body awarding the
contract.
    Nothing in this section shall be construed to limit the authority of the
state of Idaho or other public body hereinabove mentioned to require a
performance bond or other security in addition to these, or in cases other
than the cases specified in this chapter.
    It shall be illegal for the invitation for bids, or any person acting or
purporting to act, on behalf of the contracting body to require that such
bonds be furnished by a particular surety company, or through a particular
agent or broker.