Alaska Statutes
Alaska Stat. § 36.25.010 (2026)
Bonds of contractors for public buildings or works
✓ current as of July 2026
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Sec. 36.25.010. Bonds of contractors for public buildings or works.
(a) Except as provided in AS 44.33.300, before a contract exceeding $100,000 for the construction, alteration, or repair of a public building or public work of the state or a political subdivision of the state is awarded to a general or specialty contractor, the contractor shall furnish to the state or a political subdivision of the state the following bonds, which become binding upon the award of the contract to that contractor:
(1) a performance bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond; the amount of the performance bond shall be equivalent to the amount of the payment bond;
(2) a payment bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond for the protection of all persons who supply labor and material in the prosecution of the work provided for in the contract; when the total amount payable by the terms of the contract is not more than $1,000,000, the payment bond shall be in a sum of one-half the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $1,000,000 and not more than $5,000,000, the payment bond shall be in a sum of 40 percent of the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $5,000,000, the payment bond shall be in the sum of $2,500,000.
(b) This section does not limit the authority of a contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases specified in (a) of this section.
(c) When no payment bond has been furnished, the contracting department may not approve final payments to the contractor until the contractor files a written certification that all persons who supplied labor or material in the prosecution of the work provided for in the contract have been paid.
(a) Except as provided in AS 44.33.300, before a contract exceeding $100,000 for the construction, alteration, or repair of a public building or public work of the state or a political subdivision of the state is awarded to a general or specialty contractor, the contractor shall furnish to the state or a political subdivision of the state the following bonds, which become binding upon the award of the contract to that contractor:
(1) a performance bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond; the amount of the performance bond shall be equivalent to the amount of the payment bond;
(2) a payment bond with a corporate surety qualified to do business in the state, or at least two individual sureties who shall each justify in a sum equal to the amount of the bond for the protection of all persons who supply labor and material in the prosecution of the work provided for in the contract; when the total amount payable by the terms of the contract is not more than $1,000,000, the payment bond shall be in a sum of one-half the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $1,000,000 and not more than $5,000,000, the payment bond shall be in a sum of 40 percent of the total amount payable by the terms of the contract; when the total amount payable by the terms of the contract is more than $5,000,000, the payment bond shall be in the sum of $2,500,000.
(b) This section does not limit the authority of a contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases specified in (a) of this section.
(c) When no payment bond has been furnished, the contracting department may not approve final payments to the contractor until the contractor files a written certification that all persons who supplied labor or material in the prosecution of the work provided for in the contract have been paid.
Notes of Decisions
Cited in 16
cases (1 in the last 5 years), 1968–2021 · leading case: McGee Steel Co. v. State Ex Rel. McDonald Indus. Alaska, Inc., 723 P.2d 611 (Alaska 1986).
McGee Steel Co. v. State Ex Rel. McDonald Indus. Alaska, Inc., 723 P.2d 611 (Alaska 1986). “CJM had obtained the payment and performance bonds required by AS 36.25.010 3 through its surety, Fireman’s Fund.”
Arctic Contractors, Inc. v. State, 564 P.2d 30 (Alaska 1977). “49 SLA 1953 is presently codified with minor amendments as AS 36.25.010(a). [2] Memorandum Decision and Order of June 30, 1975 (emphasis added).”
Imperial Mfg. Ice Cold Coolers, Inc. v. Shannon, 101 P.3d 627 (Alaska 2004). “The contract acknowledged that Shannon had provided no bonding under the Little Miller Act, AS 36.25.010. 1 Shannon purchased the house packages from Imperial Manufacturing Iee Cold Coolers, Inc.”
State for Use of Smith v. Tyonek Timber, Inc., 680 P.2d 1148 (Alaska 1984). “Accordingly, H & S secured performance and payment bonds pursuant to AS 36.25.010, the Little Miller Act. Maryland was the named surety.”
State Ex Rel. Palmer Supply Co. v. Walsh & Co., 575 P.2d 1213 (Alaska 1978). “General Insurance Company of America was the surety on this contract.”
McCormick v. Reliance Ins. Co., 46 P.3d 1009 (Alaska 2002). “151 (providing that contractor may not bring action "in a court of this state for the collection of compensation for the performance of work or for breach of a contract for which registration is required .”
State Ex Rel. White v. Neal & Sons, Inc., 489 P.2d 1016 (Alaska 1971). “*1020 The purpose of AS 36.25.010 and AS 36.25.020 is to protect persons who furnish labor or material for a state public works project from the risks of nonpayment.”
Mun. of Anchorage v. Tatco, Inc., 774 P.2d 207 (Alaska 1989). “This court has stated that The purpose of AS 36.25.010 and AS 36.25.020 is to protect persons who furnish labor or material for a state public works project from the risk of nonpayment.”
Safeco Ins. Co. of Am. v. Honeywell, Inc., 639 P.2d 996 (Alaska 1981). “Safeco Insurance Company of America (Safeco) executed a payment bond under AS 36.25.010(aX2) with Interstate as principal.”
United Bonding Ins. Co. v. Castle, 444 P.2d 454 (Alaska 1968). “AS 36.25.010(a) requires that before a state contract may be awarded, the contractor must furnish to the state a payment and performance bond.”
SKW/Eskimos, Inc. v. Sentry Automatic Sprinkler Co., 723 P.2d 1293 (Alaska 1986). “AS 36.25.010 provides in relevant part: Bonds of contractors for public buildings or works, (a) Except as provided in AS 44.”
Reliance Ins. Companies, Inc. v. Alaska State Hous. Auth., 323 F. Supp. 1370 (D. Alaska 1971). “Pursuant to AS 36.25.010, Reliance Insurance Companies, Inc.”
Alaska Stat. § 36.25.010(a): 5 cases
Arctic Contractors, Inc. v. State, 564 P.2d 30 (Alaska 1977). “49 SLA 1953 is presently codified with minor amendments as AS 36.25.010(a). [2] Memorandum Decision and Order of June 30, 1975 (emphasis added).”
United Bonding Ins. Co. v. Castle, 444 P.2d 454 (Alaska 1968). “AS 36.25.010(a) requires that before a state contract may be awarded, the contractor must furnish to the state a payment and performance bond.”
Mun. of Anchorage v. Tatco, Inc., 774 P.2d 207 (Alaska 1989). “This court has stated that The purpose of AS 36.25.010 and AS 36.25.020 is to protect persons who furnish labor or material for a state public works project from the risk of nonpayment.”
Imperial Mfg. Ice Cold Coolers, Inc. v. Shannon, 101 P.3d 627 (Alaska 2004). “The contract acknowledged that Shannon had provided no bonding under the Little Miller Act, AS 36.25.010. 1 Shannon purchased the house packages from Imperial Manufacturing Iee Cold Coolers, Inc.”
GeoTek Alaska, Inc. v. Jacobs Eng'g Grp., Inc., 354 P.3d 394 (Alaska 2015).
Alaska Stat. § 36.25.010(a)(1): 1 case
Arctic Contractors, Inc. v. State, 564 P.2d 30 (Alaska 1977). “49 SLA 1953 is presently codified with minor amendments as AS 36.25.010(a). [2] Memorandum Decision and Order of June 30, 1975 (emphasis added).”
Alaska Stat. § 36.25.010(a)(2): 3 cases
McGee Steel Co. v. State Ex Rel. McDonald Indus. Alaska, Inc., 723 P.2d 611 (Alaska 1986). “CJM had obtained the payment and performance bonds required by AS 36.25.010 3 through its surety, Fireman’s Fund.”
SKW/Eskimos, Inc. v. Sentry Automatic Sprinkler Co., 723 P.2d 1293 (Alaska 1986). “AS 36.25.010 provides in relevant part: Bonds of contractors for public buildings or works, (a) Except as provided in AS 44.”
Dat Luong DBA LVDH Constr. v. W. Sur. Co. (Alaska 2021).
Alaska Stat. § 36.25.010(aX2): 1 case
Safeco Ins. Co. of Am. v. Honeywell, Inc., 639 P.2d 996 (Alaska 1981). “Safeco Insurance Company of America (Safeco) executed a payment bond under AS 36.25.010(aX2) with Interstate as principal.”
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