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Minnesota Legislature

Office of the Revisor of Statutes

HF 1981

as introduced - 87th Legislature (2011 - 2012) Posted on 03/21/2012 08:28pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 01/26/2012

Current Version - as introduced

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A bill for an act
relating to performance bonds; modifying a cost threshold relating to public
works contracts; amending Minnesota Statutes 2010, section 574.26, subdivision


Section 1.

Minnesota Statutes 2010, section 574.26, subdivision 2, is amended to read:

Subd. 2.


Except as provided in sections 574.263 and 574.264 or if the
amount of the contract is deleted text begin$75,000deleted text endnew text begin $100,000new text end or less, a contract with a public body for
the doing of any public work is not valid unless the contractor gives (1) a performance
bond to the public body with whom the contractor entered into the contract, for the
use and benefit of the public body to complete the contract according to its terms, and
conditioned on saving the public body harmless from all costs and charges that may
accrue on account of completing the specified work, and (2) a payment bond for the use
and benefit of all persons furnishing labor and materials engaged under, or to perform the
contract, conditioned for the payment, as they become due, of all just claims for the labor
and materials. Reasonable attorneys' fees, costs, and disbursements may be awarded
in an action to enforce claims under the act if the action is successfully maintained
or successfully appealed.