45A.435 Contract performance and payment bonds. - Kentucky Statutes

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45A.435 Contract performance and payment bonds. (1) 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. (2) 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.