16 P.S. § 5518 Additional Bond to Protect Labor and Materialmen On Contracts

• Library: Pennsylvania Statutes
• Edition: 2023
• Currency: Current through P.A. Acts 2023-27
• Year: 2023
• Citation: 16 P.S. § 5518

(a)Deleted by 2004, Nov. 30, P.L. 1439, No. 186, § 7, effective Jan. 31, 2005.

(b) Deleted by 2004, Nov. 30, P.L. 1439, No. 186, § 7, effective Jan. 31, 2005.

(c)Deleted by 2004, Nov. 30, P.L. 1439, No. 186, § 7, effective Jan. 31, 2005.

(d) Deleted by 2004, Nov. 30, P.L. 1439, No. 186, § 7, effective Jan. 31, 2005.

(e) Unless covered under the bonding requirements of the act of December 20, 1967 (P.L. 869, No. 385), known as the "Public Works Contractors' Bond Law of 1967," for construction contracts awarded for amounts between twenty-five thousand dollars ($25,000) and one hundred thousand dollars ($100,000), the successful bidder shall furnish a bond guaranteeing performance of the contract, in an amount as determined by the board of commissioners at the time of advertising for bids which shall be not less than ten per centum nor more than one hundred per centum of the amount of the contract, within thirty (30) days after the contract is awarded. When a construction contract is awarded in excess of one hundred thousand dollars ($100,000), the following bonds shall be delivered to the county and shall be binding on the parties upon the execution of the contract:

(1) A performance bond executed by a surety company authorized to do business in this Commonwealth and made payable to the county in an amount as determined by the county commissioners at the time of advertising for bids which shall be not less than fifty per centum nor more than one hundred per centum of the price specified in the contract and conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions of the contract.

(2) A payment bond executed by a surety company authorized to do business in this Commonwealth and made payable to the county in an amount equal to one hundred per centum of the price specified in the contract and conditioned upon the prompt payment for all materials furnished or labor supplied or performed in the prosecution of the work. Labor or materials include public utility services and reasonable rentals of equipment for the periods when the equipment is actually used at the site.

(f) A performance bond shall be solely for the protection of the county. A payment bond shall be solely for the protection of claimants supplying labor or materials to the prime contractor to whom the contract was awarded or to any of its subcontractors in the prosecution of the work provided for in the contract, whether or not the labor or materials constitutes a component part of the construction.