PRINTER'S NO. 1314
No. 1161 Session of 1999
INTRODUCED BY BARD, HERMAN, ROSS, LESCOVITZ AND COY,
APRIL 7, 1999
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 7, 1999
AN ACT
1 Amending the act of December 20, 1967 (P.L.869, No.385),
2 entitled "An act establishing a uniform and mandatory system
3 governing the requirement of bonds to be furnished by
4 contractors in the prosecution of any public building, or
5 other public work or public improvement, including road work;
6 the rights and remedies of persons furnishing labor or
7 material in the prosecution of such public building, public
8 work or public improvement, including road work; procedure in
9 connection with suits on payment bonds; rights of persons
10 furnishing labor or materials to a copy of bond; prescribing
11 penalties; and repealing other prior acts or provisions
12 thereof inconsistent herewith," further providing for
13 enforcement of claims and for financial security to be
14 provided by contractors and bidders.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Sections 4, 6 and 8 of the act of December 20,
18 1967 (P.L.869, No.385), known as the Public Works Contractors'
19 Bond Law of 1967, are amended to read:
20 Section 4. (a)--Subject to the provisions of subsection (b)
21 hereof, any claimant who has performed labor or furnished
22 material in the prosecution of the work provided for in any
23 contract for which a payment bond has been given, pursuant to
1 the provisions of subsection (a) of section 3 of this act or for
2 which other financial security has been given pursuant to
3 subsection (a) of section 3.1 of this act, and who has not been
4 paid in full therefor before the expiration of ninety days after
5 the day on which such claimant performed the last of such labor
6 or furnished the last of such materials for which he claims
7 payments, may bring an action on such payment bond or other
8 financial security in his own name, in assumpsit, to recover any
9 amount due him for such labor or material, and may prosecute
10 such action to final judgment and have execution on the
11 judgment.
12 (b) Any claimant who has a direct contractual relationship
13 with any subcontractor of the prime contractor who gave such
14 payment bond or other financial security but has no contractual
15 relationship, express or implied, with such prime contractor may
16 bring an action on the payment bond or other financial security
17 only if he has given written notice to such contractor within
18 ninety days from the date on which the claimant performed the
19 last of the labor or furnished the last of the materials for
20 which he claims payment, stating with substantial accuracy the
21 amount claimed and the name of the person for whom the work was
22 performed or to whom the material was furnished.
23 Notice shall be served by registered or certified mail,
24 postage prepaid, in an envelope addressed to such contractor at
25 any place where his office is regularly maintained for the
26 transaction of business or served in any manner in which legal
27 process may be served in the manner now or hereafter provided by
28 law for the service of a summons, except that such service need
29 not be made by a public officer.
30 Section 6. (a)--The contracting body shall furnish a
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1 certified copy of any payment bond or other financial security
2 and the contract for which such bond or security was given to
3 any person who makes an application for such copy and who
4 submits an affidavit stating that:
5 (1) He has furnished material or performed labor, for the
6 completion of the work provided for in the contract, and that he
7 has not been fully paid for such labor or material; or
8 (2) He is a defendant in an action brought on a payment bond
9 or other financial security; or
10 (3) He is the surety in a payment bond on which an action
11 has been brought or is the representative of a lending
12 institution that has issued or is maintaining financial security
13 on which an action has been brought.
14 (b) Every such applicant shall pay for each certified copy a
15 fee fixed by the contracting body to cover the actual cost of
16 the preparation of such copy.
17 (c) A certified copy of any payment bond or other financial
18 security and of the contract for which such bond or security was
19 given shall constitute prima facie evidence of the contents,
20 execution and delivery of the original of such bond and
21 contract.
22 Section 8. (a)--It is unlawful for any representative of a
23 contracting body, in issuing an invitation for bids, to require
24 that any bond specified in section 3 of this act or authorized
25 under section 3.1 of this act be furnished by a particular
26 surety company or through a particular agent or broker.
27 (b) Any person who violates the provisions of this section
28 is guilty of a misdemeanor and upon conviction thereof shall be
29 sentenced to pay a fine not exceeding five thousand dollars
30 ($5,000), or undergo imprisonment for a term not exceeding five
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1 years, or both.
2 Section 2. The amendment of sections 4, 6 and 8 of the act
3 shall be retroactive to February 15, 1991.
4 Section 3. This act shall take effect immediately.
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