Indiana § 4-13.6-7-6 Payment bonds

Indiana Statutes

§ 4-13.6-7-6 — Payment bonds

Indiana § 4-13.6-7-6

Art. 13.6STATE PUBLIC WORKS

Ch. 7Bonding, Escrow, and Retainages

This text of Indiana § 4-13.6-7-6 (Payment bonds) 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 § 4-13.6-7-6 (2026).

Text

(a)If the estimated cost of the public works project is more than two hundred thousand dollars ($200,000), the division shall require the contractor to execute a good and sufficient payment bond to the department for the state in an amount equal to one hundred percent (100%) of the total contract price. The bond shall include at least the following provisions:

(1)The contractor, its successors and assigns, whether by operation of law or otherwise, and all subcontractors, their successors and assigns, whether by operation of law or otherwise, shall pay all indebtedness that may accrue to any person on account of any labor or service performed or materials furnished in relation to the public work.

(2)The bond shall directly inure to the benefit of subcontractors, laborers, suppliers, and

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(a) If the estimated cost of the public works
project is more than two hundred thousand dollars ($200,000), the
division shall require the contractor to execute a good and sufficient
payment bond to the department for the state in an amount equal to one
hundred percent (100%) of the total contract price. The bond shall
include at least the following provisions:
(1) The contractor, its successors and assigns, whether by
operation of law or otherwise, and all subcontractors, their
successors and assigns, whether by operation of law or otherwise,
shall pay all indebtedness that may accrue to any person on
account of any labor or service performed or materials furnished
in relation to the public work.
(2) The bond shall directly inure to the benefit of subcontractors,
laborers, suppliers, and those performing service or who may
have furnished or supplied labor, material, or service in relation
to the public work.
(3) No change, modification, omission, or addition in or to the
terms or conditions of the contract, plans, specifications,
drawings, or profile or any irregularity or defect in the contract or
in the procedures preliminary to the letting and awarding of the
contract shall affect or operate to release or discharge the surety
in any way.
(4) The provisions and conditions of this chapter shall be a part of
the terms of the contract and bond.
(b) The division may permit the bond given by the contractor to
provide for incremental bonding in the form of multiple or
chronological bonds that, if taken as a whole, equal the total contract
price.
(c) The division may accept bonds provided on forms specified by
the division or on forms given by surety companies.
(d) The division shall hold the bond of a contractor for the use and
benefit of any claimant having an interest in it and entitled to its
benefits.
(e) The division shall not release sureties of a contractor until the
expiration of one (1) year after the final settlement with the contractor.
(f) If the estimated cost of the public works project is less than or
equal to two hundred thousand dollars ($200,000), the director may
require one (1) of the following:
(1) The contractor must execute a good and sufficient payment
bond. The director may determine the amount of the bond to be
any percentage, but no more than one hundred percent (100%), of
the cost of the project.
(2) The division will withhold retainage under this chapter in an
amount of ten percent (10%) of the dollar value of all payments
made to the contractor until the public work is substantially
completed.