The bill amends sections of the General Laws related to "Contractors' Bonds," specifically focusing on the requirements for contractors to furnish bonds before being awarded certain public works contracts. The bill introduces language that allows the chief purchasing officer of the state to waive the bonding requirement for certified minority business enterprises (MBEs) or women-owned business enterprises (WBEs) that are prime contractors or subcontractors on public works projects, for contracts up to $250,000. Additionally, the bill modifies the terms and conditions under which contractors are required to give bonds, including the bond amount, which must be between 50% and 100% of the contract price, and the bond's conditions for performance and indemnification.

The bill also addresses retainers relating to contracts for public works, sewer, or water main construction, specifying the percentage that may be retained to secure satisfactory performance and the handling of costs for municipal police traffic control. Furthermore, it mandates the director of the department of administration to establish methods for the interim release of retainage for MBEs. Changes to the "Prompt Payment by Department of Administration" section include altering the time frame for payment from 30 working days to 30 calendar days upon receipt of a proper invoice and changing the time frame for contractors to pay subcontractors from ten days to seven days after receiving payment from the state. The bill is set to take effect upon passage and aims to improve the time frame and procedure for payment by prime contractors to minority business enterprise subcontractors.

Statutes affected:
7057  SUB A: 42-11.1-3
7057: 42-11.1-3