First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE ENROLLED ACT No. 211
AN ACT to amend the Indiana Code concerning state and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-13.6-2-12; (07)SE0211.1.1. -->
SECTION 1. IC 4-13.6-2-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 12. The department shall offer instruction at least
annually to:
(1) small businesses (as defined in IC 5-22-14-1);
(2) minority business enterprises (as defined in
IC 4-13-16.5-1); and
(3) women's business enterprises (as defined in
IC 4-13-16.5-1.3);
with regard to bonding requirements and working with the surety
industry to secure bonding for public works projects.
SOURCE: IC 4-13.6-7-1; (07)SE0211.1.2. -->
SECTION 2. IC 4-13.6-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. The director may
apply the retainage provisions of this chapter to public works projects
with an estimated cost less than the amounts amount specified in
section 2 or 7 of this chapter.
SOURCE: IC 4-13.6-7-5; (07)SE0211.1.3. -->
SECTION 3. IC 4-13.6-7-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) The director:
(1) may require each contractor
of a public works project with
an estimated cost of not more than two hundred thousand
dollars ($200,000); and
(2) shall require each contractor of a public works project
with an estimated cost of more than two hundred thousand
dollars ($200,000);
to submit a good and sufficient bid bond with the bid. The bid bond
may equal any percentage of the estimated cost of the public works
project that the director requires.
(b) The division may accept bonds provided on forms specified by
the department or on forms given by surety companies.
SOURCE: IC 4-13.6-7-6; (07)SE0211.1.4. -->
SECTION 4. IC 4-13.6-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 6. (a) If the estimated
cost of the public works project is at least one more than two hundred
fifty thousand dollars ($150,000), ($200,000), the division shall require
the contractor to execute a good and sufficient payment bond to the
department for the state in an amount equal to one hundred percent
(100%) of the total contract price. The bond shall include at least the
following provisions:
(1) The contractor, its successors and assigns, whether by
operation of law or otherwise, and all subcontractors, their
successors and assigns, whether by operation of law or otherwise,
shall pay all indebtedness that may accrue to any person on
account of any labor or service performed or materials furnished
in relation to the public work.
(2) The bond shall directly inure to the benefit of subcontractors,
laborers, suppliers, and those performing service or who may
have furnished or supplied labor, material, or service in relation
to the public work.
(3) No change, modification, omission, or addition in or to the
terms or conditions of the contract, plans, specifications,
drawings, or profile or any irregularity or defect in the contract or
in the procedures preliminary to the letting and awarding of the
contract shall affect or operate to release or discharge the surety
in any way.
(4) The provisions and conditions of this chapter shall be a part of
the terms of the contract and bond.
(b) The division may permit the bond given by the contractor to
provide for incremental bonding in the form of multiple or
chronological bonds that, if taken as a whole, equal the total contract
price.
(c) The division may accept bonds provided on forms specified by
the division or on forms given by surety companies.
(d) The division shall hold the bond of a contractor for the use and
benefit of any claimant having an interest in it and entitled to its
benefits.
(e) The division shall not release sureties of a contractor until the
expiration of one (1) year after the final settlement with the contractor.
(f) If the estimated cost of the public works project is less than one
or equal to two hundred fifty thousand dollars ($150,000) ($200,000),
the director may require one (1) of the following:
(1) The contractor must execute a good and sufficient payment
bond. The director may determine the amount of the bond to be
any percentage, but no more than one hundred percent (100%), of
the cost of the project.
(2) The division will withhold retainage under this chapter in an
amount of ten percent (10%) of the dollar value of all payments
made to the contractor until the public work is substantially
completed.
SOURCE: IC 4-13.6-7-7; (07)SE0211.1.5. -->
SECTION 5. IC 4-13.6-7-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) If the estimated
cost of the public works project is:
(1) at least one hundred fifty two hundred thousand dollars
($150,000) ($200,000), the division shall; or
(2) less than two hundred thousand dollars ($200,000), the
division may;
require the contractor to execute a good and sufficient performance
bond to the department for the state in an amount equal to one hundred
percent (100%) of the total contract price.
(b) The bond required under subsection (a) shall include at least
the following provisions:
(1) The contractor shall well and faithfully perform the contract.
(2) No change, modification, omission, or addition in or to the
terms or conditions of the contract, plans, specifications,
drawings, or profile or any irregularity or defect in the contract or
in the procedures preliminary to the letting and awarding of the
contract shall affect or operate to release or discharge the surety
in any way.
(3) The provisions and conditions of this chapter shall be a part of
the terms of the contract and bond.
(b) (c) The division may permit the bond given by the contractor to
provide for incremental bonding in the form of multiple or
chronological bonds that, if taken as a whole, equal the total contract
price.
(c) (d) The division may accept bonds provided on forms specified
by the division or on forms given by surety companies.
(d) (e) The division shall not release sureties of a contractor until the
expiration of one (1) year after the final settlement with the contractor.
SOURCE: IC 5-16-5.5-2; (07)SE0211.1.6. -->
SECTION 6. IC 5-16-5.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2. To the extent that
this chapter is applicable, all contracts between a contractor and a state
agency concerning any public building, work, or improvement entered
into after May 1, 1972, and which contracts are in excess of one two
hundred thousand dollars ($100,000), ($200,000) are to be governed
by the provisions of this chapter, as are the rights and duties among the
parties to the contract and any subcontractors who do any work under
the contract. A state agency may elect to have a contract that is for
not more than two hundred thousand dollars ($200,000) be
governed by this chapter. All contracts governed by the provisions of
this chapter shall include provisions for the retainage of portions of
payments by a state agency to contractors, by contractors to
subcontractors, and for the payment of subcontractors.
SOURCE: IC 5-16-5.5-3.5; (07)SE0211.1.7. -->
SECTION 7. IC 5-16-5.5-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3.5. (a) To determine
the amount of retainage to be withheld, a state agency shall elect one
(1) of the following options:
(1) Withhold no more than ten percent (10%) nor less than six
percent (6%) of the dollar value of all work satisfactorily
completed until the public work is fifty percent (50%) complete,
and nothing further after that. or
(2) Withhold no more than five percent (5%) nor less than three
percent (3%) of the dollar value of all work satisfactorily
completed until the public work is substantially complete.
(b) If upon substantial completion of the work there are any
remaining uncompleted minor items, an amount computed under
section 6 of this chapter shall be withheld until those items are
completed.
SOURCE: IC 5-30-8-4; (07)SE0211.1.8. -->
SECTION 8. IC 5-30-8-4, AS ADDED BY P.L.74-2005, SECTION
1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2007]: Sec. 4. (a) The public agency:
(1) shall require the design-builder to furnish performance and
payment bonds for the project
if the estimated cost of the
project is more than two hundred thousand dollars
($200,000); and
(2) may require the design-builder to furnish performance
and payment bonds for the project if the estimated cost of the
project is not more than two hundred thousand dollars
($200,000).
(b) A performance or payment bond is not required for, and does not
provide coverage for, the part of a design-build contract that includes
design services only.
(c) Subsection (b) does not impair the ability of the public agency
to seek recovery under the contract from the design-builder for errors,
omissions, or defects in the design services.
SOURCE: IC 8-15-2-5; (07)SE0211.1.9. -->
SECTION 9. IC 8-15-2-5, AS AMENDED BY P.L.47-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 5. The authority may do the following:
(1) Construct, maintain, repair, police, and operate toll road
projects (as defined in this chapter), public improvements, and
arterial streets and roads under section 1 of this chapter and
establish rules for the use of any such toll road project, public
improvement, or arterial street or road.
(2) Issue toll road revenue bonds of the state, payable solely from
an allocation of money from the rural transportation road fund
under IC 8-9.5-8-16 or from revenues or from the proceeds of
bonds issued under this chapter and earnings thereon, or from all
three (3), for the purpose of paying all or any part of the cost of
any one (1) or more toll road projects or for the purpose of
refunding any other toll road revenue bonds.
(3) Establish reserves from the proceeds of the sale of bonds or
from other funds, or both, to secure the payment of the bonds.
(4) Fix and revise from time to time and charge and collect tolls
for transit over each toll road project constructed by it.
(5) Acquire in the name of the state by purchase or otherwise, on
such terms and conditions and in such manner as it may deem
proper, or by the exercise of the right of condemnation in the
manner as provided by this chapter, such public or private lands,
including public parks, playgrounds or reservations, or parts
thereof or rights therein, rights-of-way, property, rights,
easements, and interests, as it may deem necessary for carrying
out the provisions of this chapter. The authority may also:
(A) sell, transfer, and convey any such land or any interest
therein so acquired, or any portion thereof, whether by
purchase, condemnation, or otherwise, and whether such land
or interest therein had been public or private, when the same
shall no longer be needed for such purposes; and
(B) transfer and convey any such lands or interest therein as
may be necessary or convenient for the construction and
operation of any toll road project, or as otherwise required
under the provisions of this chapter to a state agency or
political subdivision.
(6) Designate the locations and establish, limit, and control such
points of ingress to and egress from each toll road project as may
be necessary or desirable in the judgment of the authority to
ensure the proper operation and maintenance of such projects, and
to prohibit entrance to such project from any point not so
designated. The authority shall not grant, for the operation of
transient lodging facilities, either ingress to or egress from any
project, including the service areas thereof on which are located
service stations and restaurants, and including toll plazas and
paved portions of the right-of-way. The authority shall cause to be
erected, at its cost, at all points of ingress and egress, large and
suitable signs facing traffic from each direction on the toll road.
Such signs shall designate the number and other designations, if
any, of all United States or state highways of ingress or egress, the
names of all Indiana municipalities with a population of five
thousand (5,000) or more within a distance of seventy-five (75)
miles on such roads of ingress or egress, and the distance in miles
to such designated municipalities.
(7) Make and enter into all contracts and agreements necessary or
incidental to the performance of its duties and the execution of its
powers under this chapter, IC 8-9.5-8, or IC 8-15.5. When the cost
under any such contract or agreement, other than:
(A) a contract for compensation for personal services;
(B) a contract with the department under IC 8-9.5-8-7;
(C) a lease with the department under IC 8-9.5-8-8; or
(D) a contract, a lease, or another agreement under IC 8-15.5;
involves an expenditure of more than ten thousand dollars
($10,000), the authority shall make a written contract with the
lowest and best bidder after advertisement for not less than two
(2) consecutive weeks in a newspaper of general circulation in
Marion County, Indiana, and in such other publications as the
authority shall determine. Such notice shall state the general
character of the work and the general character of the materials to
be furnished, the place where plans and specifications therefor
may be examined, and the time and place of receiving bids. Each
bid shall contain the full name of every person or company
interested in it and shall be accompanied by a sufficient bond or
certified check on a solvent bank that if the bid is accepted a
contract will be entered into and the performance of its proposal
secured. The authority may reject any and all bids. A bond with
good and sufficient surety shall be required by the authority of all
contractors in an amount equal to at least fifty percent (50%) of
the contract price, conditioned upon the faithful performance of
the contract. The authority shall require a bid, performance,
and payment bond from a contractor for a project if the
estimated cost of the project is more than two hundred
thousand dollars ($200,000). The authority may require a bid,
performance, or payment bond from a contractor for a
project if the estimated cost of the project is not more than
two hundred thousand dollars ($200,000).
(8) Employ consulting engineers, superintendents, managers, and
such other engineers, construction and accounting experts, bond
counsel, other attorneys with the approval of the attorney general,
and other employees and agents as may be necessary in its
judgment to carry out the provisions of this chapter, and to fix
their compensation. However, all such expenses shall be payable
solely from the proceeds of toll road revenue bonds issued under
the provisions of this chapter or from revenues.
(9) Receive and accept from any federal agency, subject to
IC 8-23-3, grants for or in aid of the construction of any toll road
project, and receive and accept aid or contributions from any
source of either money, property, labor, or other things of value,
to be held, used, and applied only for the purposes for which such
grants and contributions may be made, and repay any grant to the
authority or to the department from a federal agency if such
repayment is necessary to free the authority from restrictions
which the authority determines to be in the public interest to
remove.
(10) Establish fees, charges, terms, or conditions for any
expenditures, loans, or other form of financial participation in
projects authorized as public improvements on arterial streets and
roads under section 1 of this chapter.
(11) Accept gifts, devises, bequests, grants, loans, appropriations,
revenue sharing, other financing and assistance, and any other aid
from any source and agree to and comply with conditions attached
to the aid.
(12) Accept transfer of a state highway to the authority under
IC 8-23-7-23 and pay the cost of conversion of the state highway
to a toll road project.
(13) Enter into contracts or leases with the department under
IC 8-9.5-8-7 or IC 8-9.5-8-8 and in connection with the contracts
or leases agree with the department for coordination of the
operation and the repair and maintenance of toll road projects and
tollways which are contiguous parts of the same public road,
including joint toll collection facilities and equitable division of
tolls.
(14) Enter into public-private agreements under IC 8-15.5 and do
all acts and things necessary or proper to carry out the purposes
set forth in IC 8-15.5.
(15) Do all acts and things necessary or proper to carry out this
chapter.
SOURCE: IC 8-23-7-19; (07)SE0211.1.10. -->
SECTION 10. IC 8-23-7-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 19. (a) If an exchange
under section 17 of this chapter includes improvements to be
constructed on either parcel of real property, the department shall enter
into an agreement with the owner of the parcel of property that the
department will receive. An agreement under this section must include
the following:
(1) The appraisal required under section 18 of this chapter must
include the value of improvements constructed or to be
constructed on the property.
(2) The construction contract for improvements under this section
must be guaranteed by a construction or performance bond issued
by a surety company approved by the department. The
department:
(A) shall require a performance bond from a contractor
for a project if the estimated cost of the project is more
than two hundred thousand dollars ($200,000); and
(B) may require a performance bond from a contractor for
a project if the estimated cost of the project is not more
than two hundred thousand dollars ($200,000).
(3) The plans and specifications for improvements under this
section must be certified by a licensed architect or engineer.
(b) The department must approve in writing the construction
contract, bond, plans, and specifications for the improvements before
entering into an exchange agreement under this section.
SOURCE: IC 8-23-9-8; (07)SE0211.1.11. -->
SECTION 11. IC 8-23-9-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8.
The department:
(1) shall require each bidder
must to submit a bid guarantee and
a performance bond payable to the state with the bidder's proposal
if the estimated cost of the project is more than two hundred
thousand dollars ($200,000); and
(2) may require a bidder to submit a bid guarantee and a
performance bond payable to the state with the bidder's
proposal if the estimated cost of the project is not more than
two hundred thousand dollars ($200,000).
On contracts of one hundred thousand dollars ($100,000) or less the
commissioner may waive the bond requirements. Instead of the bond,
the department may establish by rule the requirements that, in its
discretion, are necessary to assure payment of subcontractors,
suppliers, and employees by the contractor.
SOURCE: IC 36-1-12-4.5; (07)SE0211.1.12. -->
SECTION 12. IC 36-1-12-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4.5. (a) The political
subdivision or agency:
(1) shall require a bond or a certified check shall to be filed with
each bid by a bidder in the amount determined and specified by
the board in the notice of the letting if the cost of the public
work is estimated to be more than two hundred thousand
dollars ($200,000); and
(2) may require a bond or a certified check to be filed with
each bid by a bidder in the amount determined and specified
by the board in the notice of the letting if the cost of the public
work is estimated to be not more than two hundred thousand
dollars ($200,000).
(b) The amount of the bond or certified check may not be set at
more than ten percent (10%) of the contract price. The bond or certified
check shall be made payable to the political subdivision or agency.
(c) All checks of unsuccessful bidders shall be returned to them by
the board upon selection of successful bidders. Checks of successful
bidders shall be held until delivery of the performance bond, as
provided in section 14(e) of this chapter.
SOURCE: IC 36-1-12-13.1; (07)SE0211.1.13. -->
SECTION 13. IC 36-1-12-13.1, AS AMENDED BY P.L.120-2006,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 13.1. (a) Except as provided in subsection (f), (e),
this section applies to contracts for public work only if the cost of the
public work is estimated to be more than one hundred thousand dollars
($100,000). (b) the appropriate political subdivision or agency:
(1) shall require the contractor shall to execute a payment bond
to the appropriate political subdivision or agency, approved by
and for the benefit of the political subdivision or agency, in an
amount equal to the contract price if the cost of the public work
is estimated to be more than two hundred thousand dollars
($200,000); and
(2) may require the contractor to execute a payment bond to
the appropriate political subdivision or agency, approved by
and for the benefit of the political subdivision or agency, in an
amount equal to the contract price if the cost of the public
work is estimated to be not more than two hundred thousand
dollars ($200,000).
The payment bond is binding on the contractor, the subcontractor, and
their successors and assigns for the payment of all indebtedness to a
person for labor and service performed, material furnished, or services
rendered. The payment bond must state that it is for the benefit of the
subcontractors, laborers, material suppliers, and those performing
services.
(c) (b) The payment bond shall be deposited with the board. The
payment bond must specify that:
(1) a modification, omission, or addition to the terms and
conditions of the public work contract, plans, specifications,
drawings, or profile;
(2) a defect in the public work contract; or
(3) a defect in the proceedings preliminary to the letting and
awarding of the public work contract;
does not discharge the surety. The surety of the payment bond may not
be released until one (1) year after the board's final settlement with the
contractor.
(d) (c) A person to whom money is due for labor performed,
material furnished, or services provided shall, within sixty (60) days
after the completion of the labor or service, or within sixty (60) days
after the last item of material has been furnished, file with the board
signed duplicate statements of the amount due. The board shall forward
to the surety of the payment bond one (1) of the signed duplicate
statements. However, failure of the board to forward a signed duplicate
statement does not affect the rights of a person to whom money is due.
In addition, a failure to forward the statement does not operate as a
defense for the surety.
(e) (d) An action may not be brought against the surety until thirty
(30) days after the filing of the signed duplicate statements with the
board. If the indebtedness is not paid in full at the end of that thirty (30)
day period the person may bring an action in court. The court action
must be brought within sixty (60) days after the date of the final
completion and acceptance of the public work.
(f) (e) This subsection applies to contracts for a capital improvement
entered into by, for, or on behalf of the Indiana stadium and convention
building authority created by IC 5-1-17-6. The board awarding the
contract for the capital improvement project may waive any payment
bond requirement if the board, after public notice and hearing,
determines:
(1) that:
(A) an otherwise responsive and responsible bidder is unable
to provide the payment bond; or
(B) the cost or coverage of the payment bond is not in the best
interest of the project; and
(2) that an adequate alternative is provided through a letter of
credit, additional retainage of at least ten percent (10%) of the
contract amount, a joint payable check system, or other sufficient
protective mechanism.
SOURCE: IC 36-1-12-14; (07)SE0211.1.14. -->
SECTION 14. IC 36-1-12-14, AS AMENDED BY P.L.120-2006,
SECTION 5, AND AS AMENDED BY P.L.2-2006, SECTION 189, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 14. (a) This section applies to
public work contracts in excess of
one two hundred thousand dollars
($100,000) ($200,000) for projects other than highways, roads, streets,
alleys, bridges, and appurtenant structures situated on streets, alleys,
and dedicated highway rights-of-way.
A board may require a
contractor and subcontractor to include contract provisions for
retainage as set forth in this section for contracts that are not more
than two hundred thousand dollars ($200,000). This section also
applies to a lessor corporation qualifying under
IC 21-5-11 IC 20-47-2
or
IC 21-5-12 IC 20-47-3 or any other lease-back arrangement
containing an option to purchase, notwithstanding the statutory
provisions governing those leases.
(b) A board that enters into a contract for public work, and a
contractor who subcontracts parts of that contract, shall include in their
respective contracts provisions for the retainage of portions of
payments by the board to contractors, by contractors to subcontractors,
and for the payment of subcontractors. At the discretion of the
contractor, the retainage shall be held by the board or shall be placed
in an escrow account with a bank, savings and loan institution, or the
state as the escrow agent. The escrow agent shall be selected by mutual
agreement between board and contractor or contractor and
subcontractor under a written agreement among the bank or savings
and loan institution and:
(1) the board and the contractor; or
(2) the subcontractor and the contractor.
The board shall not be required to pay interest on the amounts of
retainage that it holds under this section.
(c) To determine the amount of retainage to be withheld, the board
shall:
(1) withhold no more than ten percent (10%)
nor less than six
percent (6%) of the dollar value of all work satisfactorily
completed until the public work is fifty percent (50%) completed,
and nothing further after that; or
(2) withhold no more than five percent (5%)
nor less than three
percent (3%) of the dollar value of all work satisfactorily
completed until the public work is substantially completed.
If upon substantial completion of the public work minor items remain
uncompleted, an amount computed under subsection (f)
of this section
shall be withheld until those items are completed.
(d) The escrow agreement must contain the following provisions:
(1) The escrow agent shall invest all escrowed principal in
obligations selected by the escrow agent.
(2) The escrow agent shall hold the escrowed principal and
income until receipt of notice from the board and the contractor,
or the contractor and the subcontractor, specifying the part of the
escrowed principal to be released from the escrow and the person
to whom that portion is to be released. After receipt of the notice,
the escrow agent shall remit the designated part of escrowed
principal and the same proportion of then escrowed income to the
person specified in the notice.
(3) The escrow agent shall be compensated for the agent's
services. The parties may agree on a reasonable fee comparable
with fees being charged for the handling of escrow accounts of
similar size and duration. The fee shall be paid from the escrowed
income.
The escrow agreement may include other terms and conditions
consistent with this subsection, including provisions authorizing the
escrow agent to commingle the escrowed funds with funds held in
other escrow accounts and limiting the liability of the escrow agent.
(e)
Except as provided by subsection subsections (i) and (h), the
contractor shall furnish the board with a performance bond equal to the
contract price. If acceptable to the board, the performance bond may
provide for incremental bonding in the form of multiple or
chronological bonds that, when taken as a whole, equal the contract
price. The surety on the performance bond may not be released until
one (1) year after the date of the board's final settlement with the
contractor. The performance bond must specify that:
(1) a modification, omission, or addition to the terms and
conditions of the public work contract, plans, specifications,
drawings, or profile;
(2) a defect in the public work contract; or
(3) a defect in the proceedings preliminary to the letting and
awarding of the public work contract;
does not discharge the surety.
(f) The board or escrow agent shall pay the contractor within
sixty-one (61) days after the date of substantial completion, subject to
sections 11 and 12 of this chapter. Payment by the escrow agent shall
include all escrowed principal and escrowed income. If within
sixty-one (61) days after the date of substantial completion there
remain uncompleted minor items, an amount equal to two hundred
percent (200%) of the value of each item as determined by the
architect-engineer shall be withheld until the item is completed.
Required warranties begin not later than the date of substantial
completion.
(g) Actions against a surety on a performance bond must be brought
within one (1) year after the date of the board's final settlement with the
contractor.
(h) This subsection applies to public work contracts of less than two
hundred fifty thousand dollars ($250,000). The board may waive the
performance bond requirement of subsection (e) and accept from a
contractor an irrevocable letter of credit for an equivalent amount from
an Indiana financial institution approved by the department of financial
institutions instead of a performance bond. Subsections (e) through (g)
apply to a letter of credit submitted under this subsection.
(i) This subsection applies to the Indiana stadium and convention
building authority created by IC 5-1-17-6. The board awarding the
contract for a capital improvement project may waive any performance
bond requirement if the board, after public notice and hearing,
determines:
(1) that:
(A) an otherwise responsive and responsible bidder is unable
to provide the performance bond; or
(B) the cost or coverage of the performance bond is not in the
best interest of the project; and
(2) that an adequate alternative is provided through a letter of
credit, additional retainage of at least ten percent (10%) of the
contract amount, a joint payable check system, or other sufficient
protective mechanism.
SOURCE: ; (07)SE0211.1.15. -->
SECTION 15. [EFFECTIVE JUNE 30, 2007]
IC 4-13.6-7,
IC 5-16-5.5-2, IC 5-30-8-4, IC 8-15-2-5, IC 8-23-7-19, IC 8-23-9-8,
and IC 36-1-12, all as amended by this act, apply only to public
works contracts entered into after June 30, 2007.
SEA 211 _ Concur
Figure
Graphic file number 0 named seal1001.pcx with height 58 p and width 72 p Left aligned