PRINTER'S NO. 1050
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
885
Session of
2019
INTRODUCED BY GAYDOS, GLEIM, LEWIS, MIHALEK, RYAN, BERNSTINE,
BROOKS, GROVE, KAUFFMAN, B. MILLER, MULLINS, ROTHMAN AND
ZIMMERMAN, MARCH 25, 2019
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 25, 2019
AN ACT
Amending the act of December 20, 1967 (P.L.869, No.385),
entitled "An act establishing a uniform and mandatory system
governing the requirement of bonds to be furnished by
contractors in the prosecution of any public building, or
other public work or public improvement, including road work;
the rights and remedies of persons furnishing labor or
material in the prosecution of such public building, public
work or public improvement, including road work; procedure in
connection with suits on payment bonds; rights of persons
furnishing labor or materials to a copy of bond; prescribing
penalties; and repealing other prior acts or provisions
thereof inconsistent herewith," further providing for duty of
prime contractor to provide financial security in certain
contracts involving public works and public improvements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3.1(a) of the act of December 20, 1967
(P.L.869, No.385), known as the Public Works Contractors' Bond
Law of 1967, is amended to read:
Section 3.1. (a)--Before any contract exceeding ten thousand
dollars ($10,000) for the construction, reconstruction,
alteration or repair of any public building or other public work
or public improvement, including highway work, of any
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contracting body is awarded to any prime contractor, such
contractor shall furnish to the contracting body the following
financial security, which shall become binding upon the awarding
of said contract to such contractor:
(1) [Any financial security, acceptable to and approved by
the contracting body, including, but not limited to,] A
performance bond, Federal or Commonwealth chartered lending
institution irrevocable [letters] letter of credit [and] or
restrictive or escrow [accounts] account in such lending
[institutions] institution, equal to one hundred percent of the
contract amount, conditioned upon the faithful performance of
the contract in accordance with the plans, specifications and
conditions of the contract. Such financial security shall be
solely for the protection of the contracting body which awarded
the contract.
(2) [Any financial security, acceptable to and approved by
the contracting body, including, but not limited to,] A payment
bond, Federal or Commonwealth chartered lending institution
irrevocable [letters] letter of credit [and] or restrictive or
escrow [accounts] account in such lending [institutions]
institution, equal to one hundred percent of the contract
amount. Such financial security shall be solely for the
protection of claimants supplying labor or materials to the
prime contractor to whom the contract was awarded, or to any of
his subcontractors, in the prosecution of the work provided for
in such contract, and shall be conditioned for the prompt
payment of all such material furnished or labor supplied or
performed in the prosecution of the work. "Labor or materials"
shall include public utility services and reasonable rentals of
equipment, but only for periods when the equipment rented is
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actually used at the site.
* * *
Section 2. This act shall take effect in 60 days.
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