Indiana § 36-1-12-13.1 Payment bond for public work projects in excess of $200,000; claims;
suits on bond; waiver of payment bond

Indiana Statutes

§ 36-1-12-13.1 — Payment bond for public work projects in excess of $200,000; claims; suits on bond; waiver of payment bond

Indiana § 36-1-12-13.1

Title 36LOCAL GOVERNMENT

Art. 1GENERAL PROVISIONS

Ch. 12Public Work Projects

This text of Indiana § 36-1-12-13.1 (Payment bond for public work projects in excess of $200,000; claims; suits on bond; waiver of payment bond) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-1-12-13.1 (2026).

Text

1.

(a)Except as provided in subsection (e), the appropriate political subdivision or agency:

(1)shall require the contractor to execute a payment bond to the appropriate political subdivision or agency, approved by and for the benefit of the political subdivision or agency, in an amount equal to the contract price if the cost of the public work is estimated to be more than two hundred thousand dollars ($200,000); and

(2)may require the contractor to execute a payment bond to the appropriate political subdivision or agency, approved by and for the benefit of the political subdivision or agency, in an amount equal to the contract price if the cost of the public work is estimated to be not more than two hundred thousand dollars ($200,000). The payment bond is binding on the contractor, the

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1. (a) Except as provided in subsection (e),
the appropriate political subdivision or agency:
(1) shall require the contractor to execute a payment bond to the
appropriate political subdivision or agency, approved by and for
the benefit of the political subdivision or agency, in an amount
equal to the contract price if the cost of the public work is
estimated to be more than two hundred thousand dollars
($200,000); and
(2) may require the contractor to execute a payment bond to the
appropriate political subdivision or agency, approved by and for
the benefit of the political subdivision or agency, in an amount
equal to the contract price if the cost of the public work is
estimated to be not more than two hundred thousand dollars
($200,000).
The payment bond is binding on the contractor, the subcontractor, and
their successors and assigns for the payment of all indebtedness to a
person for labor and service performed, material furnished, or services
rendered. The payment bond must state that it is for the benefit of the
subcontractors, laborers, material suppliers, and those performing
services.
(b) The payment bond shall be deposited with the board. The
payment bond must specify that:
(1) a modification, omission, or addition to the terms and
conditions of the public work contract, plans, specifications,
drawings, or profile;
(2) a defect in the public work contract; or
(3) a defect in the proceedings preliminary to the letting and
awarding of the public work contract;
does not discharge the surety. The surety of the payment bond may not
be released until one (1) year after the board's final settlement with the
contractor.
(c) A person to whom money is due for labor performed, material
furnished, or services provided must, not later than sixty (60) days after
that person completed the labor or service or after that person furnished
the last item of material:
(1) file with the board signed duplicate statements of the amount
due; and
(2) deliver a copy of the statement to the contractor.
The board shall forward to the surety of the payment bond one (1) of
the signed duplicate statements. However, failure of the board to
forward a signed duplicate statement does not affect the rights of a
person to whom money is due. In addition, a failure of the board to
forward the statement does not operate as a defense for the surety.
(d) An action may not be brought against the surety before thirty
(30) days after:
(1) the filing of the signed duplicate statements with the board;
and
(2) delivery of a copy of the statement to the contractor.
If the indebtedness is not paid in full at the end of that thirty (30) day
period the person may bring an action in court. The court action must
be brought not later than sixty (60) days after the date of the final
completion and acceptance of the public work.
(e) This subsection applies to contracts for a capital improvement
entered into by, for, or on behalf of the Indiana stadium and convention
building authority created by IC 5-1-17-6. The board awarding the
contract for the capital improvement project may waive any payment
bond requirement if the board, after public notice and hearing,
determines:
(1) that:
(A) an otherwise responsive and responsible bidder is unable to
provide the payment bond; or
(B) the cost or coverage of the payment bond is not in the best
interest of the project; and
(2) that an adequate alternative is provided through a letter of
credit, additional retainage of at least ten percent (10%) of the
contract amount, a joint payable check system, or other sufficient
protective mechanism.