The bill amends Chapter 37-12 entitled "Contractors’ Bonds" and Section 42-11.1-3 of the General Laws related to public property and works. It introduces changes to the requirements for contractors to furnish bonds before being awarded contracts by the department of transportation or the department of administration for public works projects. The bill specifies that contractors, now including prime contractors, must provide a bond for contracts exceeding $150,000, with the bond amount ranging from 50% to 100% of the contract price. The bond ensures the contractor's performance and payment for labor and materials. Notably, the bill allows for a waiver of the bonding requirement for certified minority business enterprises (MBEs) or women-owned business enterprises (WBEs) prime contractors or subcontractors on public works projects up to $250,000, upon application and for good cause by the chief purchasing officer of the state.

Additionally, the bill modifies the terms for retainers related to contracts for public works, sewer, or water main construction, setting the retention at a maximum of 5% of the contract price for contracts under $500,000. It also establishes methods for the interim release of retainage for MBEs. Furthermore, the bill amends the time period for payment by the Department of Administration, changing the payment deadline from 30 working days to 30 calendar days upon receipt of a proper invoice. It also shortens the timeframe for contractors to pay subcontractors from ten days to seven days after receiving payment from the state. The bill excludes contractors or subcontractors working on Department of Transportation contracts from this section unless a payment and performance bond is provided. The act is set to take effect upon passage and aims to improve the payment framework for prime contractors to minority business enterprise subcontractors and facilitate the participation of MBEs and WBEs in public works projects.

Statutes affected:
2902  as amended: 42-11.1-3
2902: 42-11.1-3