Bond Requirements For Public Projects Using Private Financing
Contract performance and payment bonds. Under current law, when a person, company, firm, corporation, or contractor (contractor) enters into a contract with a county, municipality, school district, or, in some instances, any other political subdivision of the state, to perform work in connection with a project that has specified characteristics, the contractor is required to execute performance bonds and payment bonds.
The act specifies that some of these bonding requirements apply to certain construction contracts situated or located on publicly owned property using public or private money or public or private financing.
(Note: This summary applies to this bill as enacted.)