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2022 SESSION
22101398DBe 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)
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) transportation-related
projects exceeding $350,000 that are 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.