§2241. Written contract and bond
A.
(1)Whenever a public entity enters into a contract in excess of five thousand
dollars for the construction, alteration, or repair of any public works, the official
representative of the public entity shall reduce the contract to writing and have it signed by
the parties. When an emergency as provided in R.S. 38:2212(D) is deemed to exist for the
construction, alteration, or repair of any public works and the contract for such emergency
work is less than fifty thousand dollars, there shall be no requirement to reduce the contract
to writing.
(2)For each contract in excess of twenty-five thousand dollars per project, the public
entity shall require of the contractor a bond with good, solvent, and sufficient surety in a sum
of not less than fifty percent o
Free access — add to your briefcase to read the full text and ask questions with AI
§2241. Written contract and bond
A.(1) Whenever a public entity enters into a contract in excess of five thousand
dollars for the construction, alteration, or repair of any public works, the official
representative of the public entity shall reduce the contract to writing and have it signed by
the parties. When an emergency as provided in R.S. 38:2212(D) is deemed to exist for the
construction, alteration, or repair of any public works and the contract for such emergency
work is less than fifty thousand dollars, there shall be no requirement to reduce the contract
to writing.
(2) For each contract in excess of twenty-five thousand dollars per project, the public
entity shall require of the contractor a bond with good, solvent, and sufficient surety in a sum
of not less than fifty percent of the contract price for the payment by the contractor or
subcontractor to claimants as defined in R.S. 38:2242. The bond furnished shall be a
statutory bond and no modification, omissions, additions in or to the terms of the contract,
in the plans or specifications, or in the manner and mode of payment shall in any manner
diminish, enlarge, or otherwise modify the obligations of the bond. The bond shall be
executed by the contractor with surety or sureties approved by the public entity and shall be
recorded with the contract in the office of the recorder of mortgages in the parish where the
work is to be done not later than thirty days after the work has begun.
(3) Notwithstanding any other provision to the contrary, for each contract in excess
of two hundred fifty thousand dollars per project in Ascension Parish, the public entity shall
require of the contractor a bond with good, solvent, and sufficient surety in a sum of not less
than fifty percent of the contract price for the payment by the contractor or subcontractor to
claimants as defined in R.S. 38:2242. The bond furnished shall be a statutory bond and no
modifications, omissions, additions in or to the terms of the contract, in the plans or
specifications, or in the manner and mode of payment shall in any manner diminish, enlarge,
or otherwise modify the obligations of the bond. The bond shall be executed by the
contractor with surety or sureties approved by the public entity and shall be recorded with
the contract in the office of the recorder of mortgages in the parish where the work is to be
done not later than thirty days after the work has begun.
B. All requirements and obligations of this Section, except the requirement to furnish
a bond, shall be applicable to any contractor or subcontractor for whom bond requirements
are waived under the provisions of R.S. 38:2216(C) or (D).
C.(1) The payment provisions of all bonds furnished for public work contracts
described in this Part, regardless of form or content, shall be construed as and deemed
statutory bond provisions. Except as provided in Paragraph (2) of this Subsection, nothing
in this Part shall be construed to preclude a surety who has furnished such a bond from
asserting any defense to the principal obligation that its principal could assert except lack of
capacity or discharge in bankruptcy of the principal obligor. Any such bond which fails to
contain any of the requirements set forth in this Part shall be deemed to incorporate all of the
requirements set forth in this Section. Language in any such bond containing any obligations
beyond the requirements set forth in this Part shall be deemed surplusage and read out of
such bond. Sureties and contractors executing payment bonds for public works contracts
under this Part shall be immune from liability for or payment of any claims not required by
this Part.
(2) The surety shall be obligated and required to issue payment to a materialman for
claims by a materialman under the following conditions:
(a) The claim is for material delivered in conformity with material specifications
provided in the order for such material.
(b) No sooner than forty-five days after delivery of the material, the materialman
sends a notice of nonpayment to the general contractor, the surety, and the owner.
(c) The materialman has not been paid in full on or before ninety days after delivery
of the material.
(3) If the requirements of Paragraph (2) of this Subsection are satisfied, the surety
shall pay the materialman within ten days after the materialman sends a payment notice to
the surety.
(4) The claim of a materialman and right to payment as provided in this Subsection
is in addition to and not in derogation of any other rights, claims, or remedies available to a
materialman in this Part.
(5) Any notice required under this Section shall be served by mailing the same by
registered or certified mail, postage prepaid, in an envelope addressed to the last known
address of the general contractor, the surety, and the owner. The return receipt indicating that
registered mail or certified mail was properly addressed to the last known address of the
general contractor, the surety, and the owner and deposited in the United States mail
regardless of whether the registered or certified mail was actually delivered, refused, or
unclaimed satisfies the notice provision of this Section.
D. A bond issued pursuant to this Section shall not create, nor shall such bond be
construed to create, any cause of action in favor of the public entity, or any third party, for
personal injury or property damages sustained by any third party during the effective period
of the bond. Nothing contained herein shall in any way limit the liability on the bond for the
performance of the work pursuant to the contract in question; however, to the extent that the
public contract in question should contain any provisions for a hold harmless or indemnity
agreement, or both, by the contractor, in favor of the public entity, for personal injury or
property damages sustained by third parties, the hold harmless or indemnity agreement, or
both, shall not be deemed or construed to be secured by the bond, conditioned upon the
concurrence of the contractor and the surety.
E. Any provisions of a bond issued pursuant to this Section which are contrary to
Subsection D hereof are hereby declared to be contrary to the public policy of the state of
Louisiana and are null and void.
F. The provisions of this Section shall not be subject to waiver by contract.
G. All contracts for projects that are directly associated with the preparation of Super
Bowl LIX are exempt from the provisions of this Section, except for contracts for projects
in excess of one hundred fifty thousand dollars. The provisions of this Subsection shall
terminate on February 10, 2025.