§ 573.6 — Subcontractors on public improvements

Iowa § 573.6

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

Text

The following provisions shall be held to be a part of every bond given for the performance
of a contract for the construction of a public improvement, whether said provisions be
inserted in such bond or not, to wit:
[1] The principal and sureties on this bond hereby agree to
pay to all persons, firms, or corporations having contracts directly
with the principal or with subcontractors, all just claims due them
for labor performed or materials furnished, in the performance
of the contract on account of which this bond is given, when the
same are not satisfied out of the portion of the contract price which
the public corporation is required to retain until completion of the
public improvement, but the principal and sureties shall not be
liable to said persons, firms, or corporations unless the claims of
said claimants against said portion of the contract price shall have
been established as provided by law.
[2] Every surety on this bond shall be deemed and held, any
contract to the contrary notwithstanding, to consent without notice:

[a] To any extension of time to the contractor in which to
perform the contract.
[b] To any change in the plans, specifications, or contract,
whensuchchangedoesnotinvolveanincreaseofmorethantwenty
percent of the total contract price, and shall then be released only
as to such excess increase.
[c] That no provision of this bond or of any other contract shall
be valid which limits to less than one year from the time of the
acceptance of the work the right to sue on this bond for defects in
the quality of the work or material not discovered or known to the
obligee at the time such work was accepted.

Legislative History

[S13, §1527-s18; C24, 27, 31, 35, 39, §10304; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.6]