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2022 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 2.2-4337 of the Code of Virginia is amended and reenacted as follows:
§ 2.2-4337. Performance and payment bonds.
A. Except as provided in subsection H, upon Upon
the award of any (i) nontransportation-related public construction
contract exceeding $500,000 awarded to any prime contractor; (ii)
construction contract exceeding $500,000 awarded to any prime contractor
requiring the performance of labor or the furnishing of materials for
buildings, structures or other improvements to real property owned or leased by
a public body; (iii) construction contract exceeding $500,000 in which the
performance of labor or the furnishing of materials will be paid with public
funds; or (iv) (ii) transportation-related projects
project authorized pursuant to Article 2 (§ 33.2-208 et seq.) of Chapter 2 of
Title 33.2 exceeding $350,000 that are is partially or wholly
funded by the Commonwealth, the contractor shall furnish to the public body the
following bonds:
1. A performance bond in the sum of the contract amount
conditioned upon the faithful performance of the contract in strict conformity
with the plans, specifications, and conditions of the contract. For
transportation-related projects authorized under Article 2 (§ 33.2-208 et seq.)
of Chapter 2 of Title 33.2, such bond shall be in a form and amount
satisfactory to the public body.
2. A payment bond in the sum of the contract amount. The bond
shall be for the protection of claimants who have and fulfill contracts to
supply labor or materials to the prime contractor to whom the contract was
awarded, or to any subcontractors, in furtherance of the work provided for in
the contract, and shall be conditioned upon the prompt payment for all
materials furnished or labor supplied or performed in the furtherance of the
work. For transportation-related projects authorized under Article 2 (§
33.2-208 et seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by
the Commonwealth, such bond shall be in a form and amount satisfactory to the
public body.
"Labor or materials" shall include public utility
services and reasonable rentals of equipment, but only for periods when the
equipment rented is actually used at the site.
B. For nontransportation-related construction contracts in
excess of $100,000 but less than $500,000, where the bid bond requirements are
waived, prospective contractors shall be prequalified for each individual
project in accordance with § 2.2-4317.
C. Each of the bonds shall be executed by one or more
surety companies selected by the contractor that are authorized to do business
in Virginia.
D. C. If the public body is the Commonwealth, or
any agency or institution thereof, the bonds shall be payable to the
Commonwealth of Virginia, naming also the agency or institution thereof. Bonds
required for the contracts of other public bodies shall be payable to such
public body.
E. D. Each of the bonds shall be filed with the
public body that awarded the contract, or a designated office or official
thereof.
F. E. Nothing in this section shall preclude a
public body from requiring payment or performance bonds for construction
contracts below $500,000 for nontransportation-related projects or $350,000 for
transportation-related projects authorized under Article 2 (§ 33.2-208 et seq.)
of Chapter 2 of Title 33.2 and partially or wholly funded by the Commonwealth.
G. F. Nothing in this section shall preclude the
contractor from requiring each subcontractor to furnish a payment bond with
surety thereon in the sum of the full amount of the contract with such
subcontractor conditioned upon the payment to all persons who have and fulfill
contracts that are directly with the subcontractor for performing labor and
furnishing materials in the prosecution of the work provided for in the
subcontract.
H. The performance and payment bond requirements of
subsection A for transportation-related projects that are valued in excess of
$250,000 but less than $350,000 may only be waived by a public body if the
bidder provides evidence, satisfactory to the public body, that a surety
company has declined an application from the contractor for a performance or
payment bond.