§ 573.2 — Public improvements — bond — waiver and remedies

Iowa § 573.2

• Jurisdiction: Iowa
• Title XIV: PROPERTY
• Ch. 573: LABOR AND MATERIAL ON PUBLIC IMPROVEMENTS

Text

1. Contracts for the construction of a public improvement shall, when the contract
price equals or exceeds twenty-five thousand dollars, be accompanied by a bond, with
surety, conditioned for the faithful performance of the contract, and for the fulfillment of
other requirements as provided by law. The bond may also be required when the contract
price does not equal that amount. However, if a contractor provides a performance or
maintenance bond as required by a public improvement contract governed by this chapter
and subsequently the surety company becomes insolvent and the contractor is required to
purchase a new bond, the contractor may apply for reimbursement from the governmental
agency that required a second bond and the claims shall be reimbursed from funds allocated
for road construction purposes.
2. If the requirement for a bond is waived pursuant to section 12.44, a person, firm, or

corporation, having a contract with the targeted small business or with subcontractors of the
targeted small business, for labor performed or materials furnished, in the performance of
the contract on account of which the bond was waived, is entitled to any remedy provided
under this chapter. When a bond has been waived pursuant to section 12.44, the remedies
provided for under this subsection are available in an action against the public corporation.

Legislative History

[C24, 27, 31, 35, 39, §10300; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.2; 82 Acts, ch 1096, §1]