§ 14 §871 — Public Works Contractors' Surety Bond Law of 1971

Maine § 14 §871

• Jurisdiction: Maine
• Title 14: COURT PROCEDURE -- CIVIL
• Part 2: PROCEEDINGS BEFORE TRIAL
• Ch. 205: LIMITATION OF ACTIONS

Text

1.
Title.
This section shall be known and may be cited as the "Public Works Contractors' Surety Bond Law of 1971".
2.
Person and claimant.
The terms "person" and "claimant" and the masculine pronoun as used in this section shall include individuals, associations, corporations or partnerships.
3.
Surety bonds.
Except as provided in Title 5, section 1745, before any contract exceeding $125,000 in amount for the construction, alteration or repair of any public building or other public improvement or public work, including highways, is awarded to any person by the State or by any political subdivision or quasi-municipal corporation or by any public authority, that person must furnish to the State or to the other contracting body, as the case may be, the following surety bonds:
3-A.
Letter of credit.
Notwithstanding the surety bond requirements of subsection 3, at the discretion of the State or other contracting authority, a person may provide an irrevocable letter of credit in lieu of the performance bond required by subsection 3, paragraph A or the payment bond required by subsection 3, paragraph B, or both, to the State or the contracting authority, as the case may be. For purposes of this subsection, "letter of credit" has the same meaning as in Title 11, section 5‑1102, subsection (1), paragraph (j).
4.
Actions.
Any person who has furnished labor or material to the contractor or to a subcontractor of the contractor in the prosecution of the work provided for in a contract in respect to which a payment bond has been furnished under subsection 3, paragraph B, and who has not been paid in full before the expiration of 90 days after the day on which the last of the labor was performed by that person or material was furnished or supplied by that person for which a claim is made, may bring an action on the payment bond in that person's own name for the amount, or the balance thereof, unpaid at the time of the institution of the action. Any such claimant having a direct contractual relationship with a subcontractor of the contractor furnishing such a payment bond but no contractual relationship, express or implied, with that contractor does not have the right of action upon that payment bond unless the claimant has given written notice to the contractor within 90 days from the date on which the claimant performed the last of the labor, or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such a notice must be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence.
5.
Application.
This section shall not apply to any contract awarded pursuant to any invitation for bids issued on or before September 23, 1971 or to any bonds furnished in respect to any such contract.
6.
Jurisdiction.
An action on a performance bond furnished under subsection 3, paragraph A or an action on a payment bond furnished under subsection 3, paragraph B in accordance with subsection 4 must be brought in the county in this State where the construction, alteration or repair of the public building or other public improvement or public work is located.

Legislative History

PL 1971, c. 59 (NEW). PL 1971, c. 622, §53 (AMD). PL 1973, c. 625, §82 (AMD). PL 1985, c. 154 (AMD). PL 1985, c. 554, §2 (AMD). PL 1989, c. 483, §A31 (AMD). PL 1993, c. 436, §1 (AMD). PL 2007, c. 500, §§1-4 (AMD).