Sec. 13.1. (a) Except as provided in subsection (e), the appropriate political subdivision or agency:
(1) shall require the contractor to execute a payment bond to the appropriate political subdivision or agency, approved by and for the benefit of the political subdivision or agency, in an amount equal to the contract price if the cost of the public work is estimated to be more than two hundred thousand dollars ($200,000); and
(2) may require the contractor to execute a payment bond to the appropriate political subdivision or agency, approved by and for the benefit of the political subdivision or agency, in an amount equal to the contract price if the cost of the public work is estimated to be not more than two hundred thousand dollars ($200,000).
The payment bond is binding on the contractor, the subcontractor, and their successors and assigns for the payment of all indebtedness to a person for labor and service performed, material furnished, or services rendered. The payment bond must state that it is for the benefit of the subcontractors, laborers, material suppliers, and those performing services.
(b) The payment bond shall be deposited with the board. The payment bond must specify that:
(1) a modification, omission, or addition to the terms and conditions of the public work contract, plans, specifications, drawings, or profile;
(2) a defect in the public work contract; or
(3) a defect in the proceedings preliminary to the letting and awarding of the public work contract;
does not discharge the surety. The surety of the payment bond may not be released until one (1) year after the board's final settlement with the contractor.
(c) A person to whom money is due for labor performed, material furnished, or services provided must, not later than sixty (60) days after that person completed the labor or service or after that person furnished the last item of material:
(1) file with the board signed duplicate statements of the amount due; and
(2) deliver a copy of the statement to the contractor.
The board shall forward to the surety of the payment bond one (1) of the signed duplicate statements. However, failure of the board to forward a signed duplicate statement does not affect the rights of a person to whom money is due. In addition, a failure of the board to forward the statement does not operate as a defense for the surety.
(d) An action may not be brought against the surety before thirty (30) days after:
(1) the filing of the signed duplicate statements with the board; and
(2) delivery of a copy of the statement to the contractor.
If the indebtedness is not paid in full at the end of that thirty (30) day period the person may bring an action in court. The court action must be brought not later than sixty (60) days after the date of the final completion and acceptance of the public work.
(e) This subsection applies to contracts for a capital improvement entered into by, for, or on behalf of the Indiana stadium and convention building authority created by IC 5-1-17-6. The board awarding the contract for the capital improvement project may waive any payment bond requirement if the board, after public notice and hearing, determines:
(1) that:
(A) an otherwise responsive and responsible bidder is unable to provide the payment bond; or
(B) the cost or coverage of the payment bond is not in the best interest of the project; and
(2) that an adequate alternative is provided through a letter of credit, additional retainage of at least ten percent (10%) of the contract amount, a joint payable check system, or other sufficient protective mechanism.
As added by P.L.337-1987, SEC.4. Amended by P.L.82-1995, SEC.18; P.L.120-2006, SEC.4; P.L.133-2007, SEC.13; P.L.75-2012, SEC.10.
Structure Indiana Code
Chapter 12. Public Work Projects
36-1-12-0.1. Application of Certain Amendments to Chapter
36-1-12-1. Application of Chapter; Alternatives to Chapter
36-1-12-3. Public Work Projects
36-1-12-4. Bidding Procedures for Projects Costing More Than Certain Amounts
36-1-12-4.5. Bond or Certified Check; Filing by Bidders
36-1-12-4.7. Procedures for Inviting Quotes; Applicable Dollar Amounts
36-1-12-4.9. Alternate Procedures for Projects Costing Less Than $150,000
36-1-12-5. Procedures for Inviting Quotes; Applicable Dollar Amount
36-1-12-7. Public Buildings; Approval of Plans and Specifications by Licensed Architect or Engineer
36-1-12-9. Emergencies; Contracts by Invitation
36-1-12-10. Plans and Specifications; Approval by Various Agencies
36-1-12-11. Completion of Project; Procedure
36-1-12-12. Final Payment; Requirements; Claims by Subcontractors, Laborers, or Suppliers; Disputes
36-1-12-13. Contract Provision for Payment of Subcontractors, Laborers, or Suppliers
36-1-12-15. Contractor Requirements; Antidiscrimination Provisions
36-1-12-16. Necessity of Compliance With Chapter
36-1-12-18. Change or Alteration of Specifications; Change Orders
36-1-12-20. Trench Safety Systems; Cost Recovery
36-1-12-21. Plumbing Installations; Proof of Licensure
36-1-12-23. Application of Ic 5-22-16.5 to Award of Contracts Under Article