The bill amends Chapter 37-12 entitled "Contractors’ Bonds" of the General Laws, specifically sections 37-12-1 and 37-12-10, as well as section 42-11.1-3 of Chapter 42-11.1 entitled "Prompt Payment by Department of Administration." The amendments include changes to the requirements for contractors to furnish bonds before being awarded certain public works contracts. The bill introduces the possibility for the chief purchasing officer of the state to waive the bonding requirement for State of Rhode Island office of diversity, equity, and opportunity certified minority business enterprise (MBE) or women-owned business enterprise (WBE) prime contractors or subcontractors on public works projects for contracts up to $250,000. This is a change from the previous language, which expressly prohibited any waiver of the bonding requirements.

Additionally, the bill modifies the terms related to retainers for contracts for public works, sewer, or water main construction, including the establishment of methods for the interim release of retainage for MBEs by the director of the department of administration. It also amends the time frame for payment by the state from thirty working days to thirty calendar days upon receipt of a proper invoice and changes the time frame for contractors to pay subcontractors from ten days to seven days after receiving payment from the state. The bill stipulates that these changes will take effect upon passage and aims to adjust the procedures for payment by prime contractors to minority business enterprise subcontractors.

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