(a) When the totalamount of construction contracts awarded for any one project exceeds threehundred thousand dollars ($300,000), a performance and payment bond as setforth in (1) and (2) is required by the contracting body from any contractor orconstruction manager at risk with a contract more than fifty thousand dollars($50,000). In the discretion of the contracting body, a performance and paymentbond may be required on any construction contract as follows:
(1) A performance bondin the amount of one hundred percent (100%) of the construction contractamount, conditioned upon the faithful performance of the contract in accordancewith the plans, specifications and conditions of the contract. Such bond shallbe solely for the protection of the contracting body that is constructing theproject.
(2) A payment bond inthe amount of one hundred percent (100%) of the construction contract amount,conditioned upon the prompt payment for all labor or materials for which acontractor or subcontractor is liable. The payment bond shall be solely for theprotection of the persons furnishing materials or performing labor for which acontractor, subcontractor, or construction manager at risk is liable.
(b) The performancebond and the payment bond shall be executed by one or more surety companieslegally authorized to do business in the State of North Carolina and shallbecome effective upon the awarding of the construction contract. (1973, c. 1194, s. 1; 1983,c. 818; 1987 (Reg. Sess., 1988), c. 1108, s. 10; 1995, c. 367, s. 3; 2001‑496,s. 7.)
(a) When the totalamount of construction contracts awarded for any one project exceeds threehundred thousand dollars ($300,000), a performance and payment bond as setforth in (1) and (2) is required by the contracting body from any contractor orconstruction manager at risk with a contract more than fifty thousand dollars($50,000). In the discretion of the contracting body, a performance and paymentbond may be required on any construction contract as follows:
(1) A performance bondin the amount of one hundred percent (100%) of the construction contractamount, conditioned upon the faithful performance of the contract in accordancewith the plans, specifications and conditions of the contract. Such bond shallbe solely for the protection of the contracting body that is constructing theproject.
(2) A payment bond inthe amount of one hundred percent (100%) of the construction contract amount,conditioned upon the prompt payment for all labor or materials for which acontractor or subcontractor is liable. The payment bond shall be solely for theprotection of the persons furnishing materials or performing labor for which acontractor, subcontractor, or construction manager at risk is liable.
(b) The performancebond and the payment bond shall be executed by one or more surety companieslegally authorized to do business in the State of North Carolina and shallbecome effective upon the awarding of the construction contract. (1973, c. 1194, s. 1; 1983,c. 818; 1987 (Reg. Sess., 1988), c. 1108, s. 10; 1995, c. 367, s. 3; 2001‑496,s. 7.)
(a) When the totalamount of construction contracts awarded for any one project exceeds threehundred thousand dollars ($300,000), a performance and payment bond as setforth in (1) and (2) is required by the contracting body from any contractor orconstruction manager at risk with a contract more than fifty thousand dollars($50,000). In the discretion of the contracting body, a performance and paymentbond may be required on any construction contract as follows:
(1) A performance bondin the amount of one hundred percent (100%) of the construction contractamount, conditioned upon the faithful performance of the contract in accordancewith the plans, specifications and conditions of the contract. Such bond shallbe solely for the protection of the contracting body that is constructing theproject.
(2) A payment bond inthe amount of one hundred percent (100%) of the construction contract amount,conditioned upon the prompt payment for all labor or materials for which acontractor or subcontractor is liable. The payment bond shall be solely for theprotection of the persons furnishing materials or performing labor for which acontractor, subcontractor, or construction manager at risk is liable.
(b) The performancebond and the payment bond shall be executed by one or more surety companieslegally authorized to do business in the State of North Carolina and shallbecome effective upon the awarding of the construction contract. (1973, c. 1194, s. 1; 1983,c. 818; 1987 (Reg. Sess., 1988), c. 1108, s. 10; 1995, c. 367, s. 3; 2001‑496,s. 7.)
