Section 36.25.010. Bonds of contractors for public buildings or works.

   (a) Except as provided in AS 44.33.300, before a contract exceeding $100,000 for the construction, alteration, or repair of a public building or public work of the state or a political subdivision of the state is awarded to a general or specialty contractor, the contractor shall furnish to the state or a political subdivision of the state the following bonds, which become binding upon the award of the contract to that contractor:
        (1) a performance bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond; the amount of the performance bond shall be equivalent to the amount of the payment bond;
        (2) a payment bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond for the protection of all persons who supply labor and material in the prosecution of the work provided for in the contract; when the total amount payable by the terms of the contract is not more than $1,000,000, the payment bond shall be in a sum of one-half the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $1,000,000 and not more than $5,000,000, the payment bond shall be in a sum of 40 percent of the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $5,000,000, the payment bond shall be in the sum of $2,500,000.
   (b) This section does not limit the authority of a contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases specified in (a) of this section.
   (c) When no payment bond has been furnished, the contracting department may not approve final payments to the contractor until the contractor files a written certification that all persons who supplied labor or material in the prosecution of the work provided for in the contract have been paid.

Authorities

18.55.996;19.40.030;36.25.020;36.25.025;44.33.300

Notes

References

18 AAC 76.060
18 AAC 76.245
AS 18.55.996 Creation of authorities.
AS 19.40.030 Undertakings of contractors.
AS 36.25.020 Rights of persons furnishing labor or material.
AS 36.25.025 Optional municipal exemption.
AS 44.33.300 Waiver of certain provisions.

History

(Sec. 1 ch 49 SLA 1953; am Sec. 1 ch 77 SLA 1964; am Sec. 14 ch 142 SLA 1972; am Sec. 1, 2 ch 180 SLA 1976; am Sec. 8 ch 277 SLA 1976; am Sec. 34 ch 108 SLA 1982)