The bill establishes a new requirement for general contractors in Iowa to obtain a performance bond of $50,000 payable to the person for whom they are performing work before commencing any projects in the state. This bond must be executed by a surety company authorized to operate in Iowa. However, the requirement does not apply to general contractors working for the state or its political subdivisions, including those subject to specific state agency competitive bidding requirements.

Additionally, the bill restricts local governments, such as counties, cities, townships, and school districts, from mandating that general contractors file bonds for private work beyond what is stipulated in this legislation. This aims to streamline the bonding process for general contractors while ensuring that certain protections are in place for those engaging in construction work.