779.14
779.14(1) (1) Definition. In this section, “subcontractor, supplier, or service provider” means the following:
779.14(1)(a) (a) Any person who has a direct contractual relationship, expressed or implied, with the prime contractor or with any subcontractor of the prime contractor to perform, furnish, or procure labor, services, materials, plans, or specifications, except as provided in par. (b) .
779.14(1)(b) (b) With respect to contracts entered into under s. 84.06 (2) for highway improvements, any person who has a direct contractual relationship, expressed or implied, with the prime contractor to perform, furnish, or procure labor, services, materials, plans, or specifications.
779.14(1e) (1e) Contract requirements regarding duties of prime contractor.
779.14(1e)(a) (a) All contracts involving $10,000 or more for performing, furnishing, or procuring labor, services, materials, plans, or specifications, when the same pertains to any public improvement or public work shall contain a provision for the payment by the prime contractor of all claims for labor, services, materials, plans, or specifications performed, furnished, procured, used, or consumed that pertain to the public improvement or public work.
779.14(1e)(b) (b) All contracts that are in excess of $30,000 and that are for performing, furnishing, or procuring labor, services, materials, plans, or specifications for a public improvement or public work shall contain a provision under which the prime contractor agrees, to the extent practicable, to maintain a list of all subcontractors, suppliers, and service providers performing, furnishing, or procuring labor, services, materials, plans, or specifications under the contract.
779.14(1m) (1m) Payment and performance assurance requirements.
779.14(1m)(c) (c) State contracts. The following requirements apply to contracts with the state for performing, furnishing, or procuring labor, services, materials, plans, or specifications for a public improvement or public work:
779.14(1m)(c)1. 1. In the case of a contract with a contract price exceeding $16,000 but not exceeding $148,000:
779.14(1m)(c)2. 2. In the case of a contract with a contract price exceeding $148,000 but not exceeding $369,000:
779.14(1m)(c)3. 3. In the case of a contract with a contract price exceeding $369,000 the contract shall require the prime contractor to obtain a payment and performance bond meeting the requirements under par. (e) .
779.14(1m)(d) (d) Local government contracts. The following requirements apply to contracts, other than contracts with the state, for performing, furnishing, or procuring labor, services, materials, plans, or specifications for a public improvement or public work:
779.14(1m)(d)1. 1. In the case of a contract with a contract price exceeding $16,000 but not exceeding $74,000:
779.14(1m)(d)2. 2. In the case of a contract with a contract price exceeding $74,000 but not exceeding $148,000:
779.14(1m)(d)3. 3. Except as provided in sub. (4) , in the case of a contract with a contract price exceeding $148,000 the contract shall require the prime contractor to obtain a payment and performance bond meeting the requirements under par. (e) .
779.14(1m)(e) (e) Bonding requirements.
779.14(1m)(e)2. 2. A bond required under par. (c) or (d) shall carry a penalty of not less than the contract price, and shall be conditioned for all of the following:
779.14(1m)(e)3. 3. A bond required under par. (c) shall be approved for the state by the state official authorized to enter the contract. A bond required under par. (d) shall be approved for a county by its corporation counsel, for a city by its mayor, for a village by its president, for a town by its chairperson, for a school district by its president and for any other public board or body by the presiding officer thereof.
779.14(1m)(e)4. 4. No assignment, modification or change of the contract, change in the work covered thereby or extension of time for the completion of the contract may release the sureties on a bond required under par. (c) or (d) .
779.14(1m)(e)5. 5. Neither the invitation for bids nor the person having power to approve the prime contractor’s bond may require that a bond required under par. (c) or (d) be furnished by a specified surety company or through a specified agent or broker.
779.14(1m)(f) (f) Direct purchase contracts. Paragraphs (c) and (d) do not apply to a contract for the direct purchase of materials by the state or by a local unit of government.
779.14(2) (2) Actions on a performance and payment bond.
779.14(2)(a) (a) Except as provided in par. (am) , no later than one year after the completion of work under the contract, any party in interest, including any subcontractor, supplier, or service provider, may maintain an action in that party’s name against the prime contractor and the sureties upon the bond for the recovery of any damages sustained by reason of any of the following:
779.14(2)(a)1. 1. Failure of the prime contractor to comply with the contract.
779.14(2)(a)2. 2. Except as provided in subd. 3. , failure of the prime contractor or a subcontractor of the prime contractor to comply with a contract, whether express or implied, with a subcontractor, supplier, or service provider for performing, furnishing, or procuring labor, services, materials, plans, or specifications for the purpose of making the public improvement or performing the public work that is the subject of the contract with the governmental entity.
779.14(2)(a)3. 3. With respect to contracts entered into under s. 84.06 (2) for highway improvements, failure of the prime contractor to comply with a contract, whether express or implied, with a subcontractor, supplier, or service provider of the prime contractor for performing, furnishing, or procuring labor, services, materials, plans, or specifications for the purpose of making the highway improvement that is the subject of the contract with the governmental entity.
779.14(2)(am) (am)
779.14(2)(am)1. 1. Except as provided in subd. 2. , a subcontractor, supplier, or service provider may maintain an action under par. (a) only if the subcontractor, supplier, or service provider has served a written notice on the prime contractor that the subcontractor, supplier, or service provider has performed, furnished, or procured, or will perform, furnish, or procure labor, services, materials, plans, or specifications to the public work or improvement. The notice must be served no later than 60 days after the date on which the subcontractor, supplier, or service provider first performed, furnished, or procured the labor, services, materials, plans, or specifications.
779.14(2)(am)2. 2. A notice under subd. 1. is not required if any of the following applies:
779.14(2)(b) (b) If the amount realized on the bond is insufficient to satisfy all claims of the parties in full, it shall be distributed among the parties proportionally.
779.14(3) (3) Actions by a county. In an action by a county upon the bond all persons for whose protection it was given and who make claim thereunder may be joined in the action. The county highway commissioner may take assignments of all demands and claims for labor, services, materials, plans, or specifications and enforce the same in the action for the benefit of the assignors, and the judgment may provide the manner in which the assignors shall be paid.
779.14(4) (4) Bonding exemption. A contract with a local professional football stadium district under subch. IV of ch. 229 is not required under sub. (1m) (d) 2. b. or 3. to include a provision requiring the prime contractor to provide or obtain a payment and performance bond or other payment assurance.