California Law (Last Updated: March 4, 2014) |
Civil Code - CIV |
Division 4. GENERAL PROVISIONS |
Part 6. WORKS OF IMPROVEMENT |
Title 3. PUBLIC WORK OF IMPROVEMENT |
Chapter 5. Payment Bond |
Section 9550.
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(a) A direct contractor that is awarded a public works contract involving an expenditure in excess of twenty-five thousand dollars ($25,000) shall, before commencement of work, give a payment bond to and approved by the officer or public entity by whom the contract was awarded.
(b) A public entity shall state in its call for bids that a payment bond is required for a public works contract involving an expenditure in excess of twenty-five thousand dollars ($25,000).
(c) A payment bond given and approved under this section will permit performance of and provide coverage for work pursuant to a public works contract that supplements the contract for which the bond is given, if the requirement of a new bond is waived by the public entity.
(d) For the purpose of this section, a design professional is not deemed a direct contractor and is not required to give a payment bond.
(e) This section does not apply to a public works contract with a "state entity" as defined in subdivision (d) of Section 7103 of the Public Contract Code.