§ 48:256.3 — Payment bond

Louisiana § 48:256.3

• Jurisdiction: Louisiana
• Title 48: Roads, Bridges and Ferries

Text

§256.3. Payment bond
A.(1) Whenever the department enters into a contract in excess of fifty thousand
dollars for the construction, maintenance, alteration, or repair of any public works, the
department shall require of the contractor a bond with good, solvent, and sufficient surety
in a sum not less than fifty percent of the contract price for the payment by the contractor or
subcontractor to claimants as defined in R.S. 48:256.5.
(2) 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 department 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) The recorded portion of the contract shall state that the undersecretary is the
official of the department to whom claims against the contractor or surety or both shall be
made and shall state with particularity the address for delivery of claims to the department
pursuant to R.S. 48:256.5.
B.(1) The payment provisions of all bonds furnished for department contracts
described in this Subpart, 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 Subpart 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 department
contracts under this Subpart shall be immune from liability for or payment of any claims not
required by this Subpart.
(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
are 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.
C. 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 department, 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
department 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.
D. Any provisions of a bond issued pursuant to this Section which are contrary to
Subsection C of this Section are hereby declared to be contrary to the public policy of the
state of Louisiana and are null and void.
E. The provisions of this Section shall not be subject to waiver by contract.

Legislative History

Acts 1997, No. 1112, §1, eff. July 14, 1997; Acts 1999, No. 607, §1, eff. June 30, 1999; Acts 2024, No. 761, §2, eff. June 19, 2024.