South Carolina increases percentage owed on performance and payment surety bonds

performance

Introduced to the South Carolina senate on April 25, 2012, HB 3860 specifies that no construction on a project can begin until all bonds and securities have been delivered to the proper governmental agency. Additionally, the bill articulates that both performance and payment bonds for construction projects must cover 100 percent of the value of the contract of the construction project. The bill was previously passed by the House on Apr. 24, 2013. The bill currently sits on the Committee on Finance.

The changes in the bill read as follows:

“SECTION 2. Section 11-35-3030(2)(a) of the 1976 Code is amended to read:

( i) a performance bond satisfactory to the State, executed by a surety company meeting the criteria established by the board in regulations, or otherwise secured in a manner satisfactory to the State, in an amount equal to one hundred percent of the portion of the contract price that does not include the cost of operation, maintenance, and finance;

(ii) a payment bond satisfactory to the State, executed by a surety company meeting the criteria established by the board in regulations, or otherwise secured in a manner satisfactory to the State, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the construction work provided for in the contract. The bond must be in an amount equal to one hundred percent of the portion of the contract price that does not include the cost of operation, maintenance, and finance”

To read the full bill, click here.

If you need a surety bond in South Carolina or any other state, contact SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday, 8 a.m. to 7 p.m. CST. You’ll be connected with an expert surety specialist who will walk you through each step of the bonding process

About the Author

Jon Gottschalk
Jon Gottschalk is the Educational Outreach Director for Suretybonds.com and regularly blogs at the Surety Bond Insider to keep consumers informed on new legislation and updates in the commercial surety industry. He is also a licensed property & casualty insurance producer in Missouri.