(a) The Department of Transportation shall require that the contractor on every public highway construction contract, exceeding ten thousand dollars, furnish the Department of Transportation, county, or road district the following bonds, which shall become binding upon the award of the contract to such contractor:
(1) A performance and indemnity bond with a surety or sureties satisfactory to the authority awarding the contract, and in the full amount of the contract, and in no case less than ten thousand dollars, for the protection of the Department of Transportation, county, or road district.
(2) A payment bond with a surety or sureties satisfactory to the awarding authority, and in the amount of not less than fifty per cent of the contract, for the protection of all persons supplying labor and materials in the prosecution of work provided for in the contract for the use of each such person.
(b) Every person who has furnished labor, material, or rental equipment in the prosecution of the work provided for in such contract, in respect of which such a bond has been furnished under this section and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material or rental equipment was furnished or supplied by him for which such claim is made, shall have the right to sue on such bond for the amount, or the balance thereof, unpaid at the time of the institution of such suit and to prosecute such action to final execution and judgment for the sum or sums justly due him. A remote claimant shall have a right of action upon the bond only upon giving written notice by certified or registered mail to the contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material or rental equipment for which claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom material or rental equipment was furnished or supplied or for whom labor was done or performed. However, in no event shall the aggregate amount of any claim against such payment bond by a remote claimant exceed the amount due by the bonded contractor to the person to whom the remote claimant has supplied labor, materials, rental equipment, or services, unless the remote claimant has provided notice of furnishing labor, materials, or rental equipment to the bonded contractor. Such written notice to the bonded contractor must generally conform to the requirements of Section 29-5-20(B) and sent by certified or registered mail to the bonded contractor at any place the bonded contractor maintains a permanent office for the conduct of his business, or at the current address as shown on the records of the Department of Labor, Licensing and Regulation. After receiving the notice of furnishing labor, materials, or rental equipment, no payment by the bonded contractor shall lessen the amount recoverable by the remote claimant. However, in no event shall the aggregate amount of claims on the payment bond exceed the penal sum of the bond.
For purposes of this section, "bonded contractor" means the contractor or subcontractor furnishing the payment bond, and "remote claimant" means a person having a direct contractual relationship with a subcontractor or supplier, but no contractual relationship expressed or implied with the bonded contractor. No suit under this section shall be commenced after the expiration of one year after the date of the final settlement of the contract. Any payment bond surety for the bonded contractor must have the same rights and defenses of the bonded contractor as provided in this section.
(c) Nothing in this section shall be construed to limit the authority of any contracting authority to require a performance bond or other security in addition to those specified in this section.
(d) If the Department of Transportation enters into a public highway construction contract exceeding ten thousand dollars and requires that the contractor furnish a performance and indemnity bond, or a payment bond, or both of them, the department, the county, or the road district may not exact that the surety bond be furnished by a particular surety company or through a particular agent or broker.
HISTORY: 1962 Code Section 33-224; 1952 Code Section 33-224; 1951 (47) 457; 1963 (53) 503; 1993 Act No. 181, Section 1523; 2000 Act No. 240, Section 3; 2002 Act No. 253, Section 6; 2014 Act No. 264 (S.1026), Section 4, eff June 6, 2014.
Structure South Carolina Code of Laws
Title 57 - Highways, Bridges and Ferries
Chapter 5 - State Highway System
Section 57-5-10. Composition of state highway system in general.
Section 57-5-20. Interstate system of highways.
Section 57-5-30. State highway primary system.
Section 57-5-40. State highway secondary system.
Section 57-5-50. Transfers between secondary and primary systems.
Section 57-5-60. Permitted additions to primary system.
Section 57-5-70. Highway transfers to the state highway system.
Section 57-5-80. Highway transfers from the state secondary system.
Section 57-5-90. Belt lines and spurs.
Section 57-5-100. Other additions by department prohibited.
Section 57-5-110. Relocations in federal and state primary systems.
Section 57-5-120. Abandonment of section of relocated highway.
Section 57-5-130. Department shall publish description of roads.
Section 57-5-140. State highways within municipalities.
Section 57-5-170. Regulations affecting traffic on highway within Savannah River Project.
Section 57-5-190. Penalty involving highway within Savannah River Project.
Section 57-5-195. Bob Harrell Bridge and Interchange.
Section 57-5-310. Ownership of real estate.
Section 57-5-330. Minimum width of rights-of-way.
Section 57-5-340. Sale or other disposition of real estate.
Section 57-5-350. Certain easements shall not be sold or leased for commercial use.
Section 57-5-370. Condemnation for streets within municipalities or materials.
Section 57-5-380. Condemnation of property of public service corporations.
Section 57-5-540. Condemnation award shall be paid by department.
Section 57-5-550. Deeds and other instruments to be filed and indexed.
Section 57-5-570. Records to be maintained in tax assessors' offices.
Section 57-5-580. Cost of right-of-way as part of cost of construction.
Section 57-5-590. Rights additional to those of county authorities.
Section 57-5-600. Abandonment of right-of-way.
Section 57-5-720. Standards of construction.
Section 57-5-730. Removal of view-obstructing dirt banks at intersections.
Section 57-5-740. Construction of federal-aid secondary or feeder highways.
Section 57-5-750. Contracts with counties for farm-to-market roads.
Section 57-5-770. Projects in which water-controlling device reduces cost of highway construction.
Section 57-5-790. Construction of project involving water-controlling device.
Section 57-5-820. Consent of municipality to work on state highways; exception; definitions.
Section 57-5-830. Assent of municipality to plans; exception.
Section 57-5-840. Alterations of state highways by municipalities.
Section 57-5-845. Parking facilities in beach communities.
Section 57-5-850. Source of funds for system.
Section 57-5-860. Construction of facilities for access to public landings; liability to users.
Section 57-5-880. Transportation improvement projects; definitions; responsibility for costs.
Section 57-5-1010. Definitions.
Section 57-5-1020. Establishment and maintenance of controlled-access facilities.
Section 57-5-1040. Regulation of access to controlled-access facilities.
Section 57-5-1050. Elimination of intersections.
Section 57-5-1060. Establishment and maintenance of frontage roads.
Section 57-5-1090. Issuance or denial of permits; conditions; providing access or frontage roads.
Section 57-5-1110. Closing illegal private driveways or side-road entrances or exits.
Section 57-5-1140. Installation of residential rights-of-way entrances and aprons to state highways.
Section 57-5-1310. Statement of purpose and intent.
Section 57-5-1320. Definitions.
Section 57-5-1340. Additional powers.
Section 57-5-1350. Request for issuance of turnpike bonds; form and contents of request.
Section 57-5-1360. Power and duty of State Fiscal Accountability Authority upon receipt of request.
Section 57-5-1370. Authority to issue bonds.
Section 57-5-1380. Turnpike revenue pledged for payment of bonds.
Section 57-5-1390. Bond interest, maturity, and redemption.
Section 57-5-1400. Sale of bonds; expenses incident to sale.
Section 57-5-1410. Execution of bonds; authentication.
Section 57-5-1420. Application of bond proceeds.
Section 57-5-1430. Denominations.
Section 57-5-1440. Form of bonds; to whom payable.
Section 57-5-1450. Resolution to issue bonds; terms and conditions.
Section 57-5-1460. Power and duty of Governor and State Treasurer upon receipt of bond resolution.
Section 57-5-1470. Exemption of bonds from taxation.
Section 57-5-1480. Lawful for fiduciaries and sinking fund commissions to invest in turnpike bonds.
Section 57-5-1490. Penalty for failure to pay toll.
Section 57-5-1495. Collection of tolls.
Section 57-5-1610. Reserves provided for highway construction contracts.
Section 57-5-1625. Award of highway construction contracts using design-build procedure.
Section 57-5-1630. Extension of construction contracts to include additional work.
Section 57-5-1650. Regulations as to qualifications of contractors permitted to bid on work.
Section 57-5-1660. Contractors' bonds; amounts and actions.
Section 57-5-1670. Compensation of contractors for losses caused by injunctions.
Section 57-5-1700. Certain sections shall not affect dealings with other government agencies.