This bill establishes a new requirement for general contractors in Iowa, mandating that they obtain a performance bond in the amount of $50,000 before commencing any work in the state. The bond must be payable to the individual or entity for whom the contractor is performing the work and must be executed by a surety company authorized to operate in Iowa. However, this 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 imposing their own bonding requirements for private work beyond what is stipulated in this legislation. This aims to standardize the bonding process for general contractors across the state while ensuring that local entities cannot impose additional burdens on contractors for private projects.