Conn. Gen. Stat. » Title 49 — MORTGAGES AND LIENS · Chapter 847 — Liens

Conn. Gen. Stat. § 49-41

Public buildings and public works. Bonds for protection of employees and materialmen. Performance bonds. Limits on use of owner-controlled insurance programs. Certain surety contract provisions

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(a) Each contract exceeding one hundred thousand dollars in amount for the construction, alteration or repair of any public building or public work of the state or a municipality shall include a provision that the person to perform the contract shall furnish to the state or municipality on or before the award date, a bond in the amount of the contract which shall be binding upon the award of the contract to that person, with a surety or sureties satisfactory to the officer awarding the contract, for the protection of persons supplying labor or materials in the prosecution of the work provided for in the contract for the use of each such person, provided no such bond shall be required to be furnished (1) in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than one hundred thousand dollars, (2) in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than one hundred thousand dollars, or (3) in relation to any general bid or sub-bid submitted by a consultant, as defined in section 4b-55. Any such bond furnished shall have as principal the name of the person awarded the contract.

(b) Nothing in this section or sections 49-41a to 49-43, inclusive, shall be construed to limit the authority of any contracting officer to require a performance bond or other security in addition to the bond referred to in subsection (a) of this section, except that no such officer shall require a performance bond in relation to any general bid in which the total estimated cost of labor and materials under the contract with respect to which such general bid is submitted is less than twenty-five thousand dollars or in relation to any sub-bid in which the total estimated cost of labor and materials under the contract with respect to which such sub-bid is submitted is less than fifty thousand dollars.

(c) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality that requires a person to supply the state or municipality with a bond may include a provision that requires the person to obtain the bond from a specific surety, agent, broker or producer. No contracting officer may require that a bond be obtained from a specific surety, agent, broker or producer.

(d) In the event that any political subdivision of the state enters into a contract described in subsection (a) of this section and fails to obtain delivery from the contractor of the bond required by this section, any person who has not been paid by the contractor for labor or materials supplied in the performance of work under the contract shall have the same legal right of action against such political subdivision of the state as such person would have had against a surety under the provisions of section 49-42. Nothing in this section shall be construed to extend liability to the state for any person's right to payment or constitute a waiver of the state's sovereign immunity.

(e) (1) As used in this subsection, “owner-controlled insurance program” means an insurance procurement program under which a principal provides and consolidates insurance coverage for one or more contractors on one or more construction projects.

(2) No contract for the construction, alteration or repair of any public building or public work of the state or a municipality may include a provision that allows or requires the state or municipality to maintain an owner-controlled insurance program, except for (A) a project approved pursuant to section 10a-109e, or (B) one or more municipal projects totaling one hundred million dollars or more (i) under the supervision of one construction manager, or (ii) located within the boundaries of a municipality if under the supervision of more than one construction manager.

(3) Each contract or policy of insurance issued under an owner-controlled insurance program pursuant to this subsection shall provide that:

(A) Coverage for work performed and materials furnished shall continue from the completion of the work until the date all causes of action are barred under any applicable statute of limitations.

(B) Any notice of a change in coverage under the contract or policy or of a cancellation or refusal to renew the coverage under the contract or policy shall be provided to the principal and all contractors covered under the program.

(C) The effective date of a (i) change in coverage under the contract or policy shall be at least thirty days after the date the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision, and (ii) cancellation or refusal to renew shall be at least sixty days after the principal and contractors receive the notice of change in coverage as required under subparagraph (B) of this subdivision.

(4) Each principal or contractor shall disclose in the project plans or specifications at the time the principal or contractor is soliciting bids for the construction project that the project will be covered by an owner-controlled insurance program.

(f) Whenever a surety bond is required in connection with a contract for the construction, reconstruction, alteration, remodeling, repair or demolition of any public building for work by the state or a municipality, that is estimated to cost more than five hundred thousand dollars and is paid for, in whole or in part, with state funds, the surety contract between the contractor named as principal in the bond and the surety that issues such bond shall contain the following provision: “In the event that the surety assumes the contract or obtains a bid or bids for completion of the contract, the surety shall ensure that the contractor chosen to complete the contract is prequalified pursuant to section 4a-100 of the Connecticut general statutes in the requisite classification and has the aggregate work capacity rating and single project limit necessary to complete the contract”.

(1949 Rev., S. 7214; P.A. 79-602, S. 98; P.A. 82-358, S. 9, 10; P.A. 87-345, S. 1; P.A. 89-27, S. 1, 2; P.A. 91-23; P.A. 93-104; P.A. 96-235, S. 13, 19; June 18 Sp. Sess. P.A. 97-11, S. 33, 65; P.A. 01-21; P.A. 05-38, S. 1; 05-193, S. 1; 05-229, S. 1; P.A. 07-202, S. 10; 07-213, S. 6.)

History: P.A. 79-602 substituted “that” or “the” for “such” where appearing; P.A. 82-358 specified when bonds shall not be required in Subsecs. (a) and (b); P.A. 87-345 amended Subsec. (a) to make contracts in excess of $25,000, instead of $1,000, subject to bond requirement, to exempt general bids in which the cost is less than $25,000, instead of $10,000, and to exempt sub-bids in which the cost is less than $50,000, instead of $20,000, and amended Subsec. (b) to provide that performance bonds shall not be required in relation to general bids in which cost is less than $25,000, instead of $10,000, and in relation to sub-bids in which cost is less than $50,000, instead of $20,000; P.A. 89-27 exempted design professionals from Subsec. (a); P.A. 91-23 amended Subsec. (a) to require that any bond furnished shall have as principal the name of the person awarded the contract; P.A. 93-104 amended Subsec. (a) to rephrase provision requiring person performing the contract to provide the state with a surety bond before the award date; P.A. 96-235 amended Subsec. (a) by substituting “consultant” for “design professional”, effective June 6, 1996; June 18 Sp. Sess. P.A. 97-11 amended Subsec. (a) by increasing contract threshold for including bond provision, from $25,000 to $50,000, and making corresponding change in Subdiv. (1), effective July 1, 1997; P.A. 01-21 made a technical change in Subsec. (b) and added new Subsec. (c) prohibiting contract provisions that require the use of a specific surety, agent, broker or producer; P.A. 05-38 amended Subsec. (a) by increasing the value of a contract that requires the furnishing of a bond from $50,000 to $100,000; P.A. 05-193 amended Subsecs. (a) and (c) to substitute “municipality” for “subdivision” and added Subsec. (e) re owner-controlled insurance programs, effective July 1, 2005; P.A. 05-229 added Subsec. (d) re the failure of a political subdivision to obtain required bond, effective July 8, 2005; P.A. 07-202 added Subsec. (f) re surety contract provision, effective July 10, 2007; P.A. 07-213 amended Subsec. (a)(1) and (2) to change references re estimated costs from $50,000 to $100,000.

See chapter 60, part II re public building contracts.

Rights of persons furnishing labor and materials under former statute. 109 C. 547. Primary purpose of former statute to protect those who furnish labor and materials. Id., 556. Former statute did not give materialman greater right against surety than against municipality; filing claim within 60 days condition precedent. 113 C. 2. Cited. 118 C. 326. Acceptance of highway by state not a bar to recovery by its insurer against contractor's surety. 126 C. 349. Subdivision of state includes city, borough or town; furnishing of bond is a condition precedent to execution of contract. 143 C. 85. History; purpose of statute. 151 C. 332. Cited. 159 C. 564; 163 C. 331; 174 C. 219; 207 C. 468; 225 C. 367; Id., 905; 229 C. 303; 236 C. 750; 239 C. 708; 240 C. 10.

Cited. 25 CA 751; 28 CA 622; 29 CA 783; 32 CA 718; 40 CA 89; Id., 777; 49 CA 522.

Cited. 3 CS 15; 5 CS 114. History reviewed; dam and appurtenant structures are not public building. 10 CS 38. Cited. 18 CS 43. Suppliers of materials, labor and equipment to subcontractor who failed to give notice to contractor may not recover under contractor's bond. Id., 305. Cited. 21 CS 16. When surety makes a payment under bond to a supplier of labor or material, surety becomes subrogated to the rights and preferences of such supplier as to sums due or to become due under the contract, and such subrogation relates back to the date of the bond. 22 CS 404. Cited. 23 CS 380. Contractual provision not incorporating statutory intent void. 29 CS 457. Cited. 32 CS 64. Section precludes a cause of action based on quantum meruit by subcontractors and materialmen against the governmental body awarding the contract. Id., 168.

Cited. 2 Conn. Cir. Ct. 622.

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Notes of Decisions
Cited in 47 cases (3 in the last 5 years), 1965–2026 · leading case: Herbert S. Newman & Partners, P.C. v. CFC Construction Ltd. Partnership
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Herbert S. Newman & Partners, P.C. v. CFC Construction Ltd. Partnership (1996) conn · cites it 26× “The principal issue in this appeal is whether contracting parties who, pursuant to General Statutes § 49-41, 1 execute a public works construction *752 payment bond may expand the coverage of the bond beyond the coverage required by the statute.”
O & G Industries, Inc. v. Town of New Milford (1994) conn · cites it 29× “The sole issue presented by this certified appeal is whether, under General Statutes § 49-41, 1 *305 a municipality owes a duty to a subcontractor or material supplier to obtain a payment bond from the general contractor.”
Nor'easter Group, Inc. v. Colossale Concrete, Inc. (1988) conn · cites it 11× “In conformity with General Statutes § 49-41 2 *471 the defendant Colossale, as principal, and the defendant Continental, as surety, furnished a bond in the amount of $230,000 guaranteeing payment to subcontractors supplying labor and material to the project.”
O & G Industries, Inc. v. Town of New Milford (1992) connappct · cites it 16× “The plaintiff had alleged that the defendant was liable in tort because it failed to secure a payment bond pursuant to General Statutes § 49-41. 1 The following facts are not disputed.”
Dysart Corp. v. Seaboard Surety Co. (1997) conn · cites it 13× “The dispositive issue in this appeal is whether a pub that has cashed wage checks for employees of a subcontractor on a public construction project is entitled to assert a claim under a labor and material payment bond issued in connection with the project pursuant to General…”
Blakeslee Arpaia Chapman, Inc. v. EI Constructors, Inc. (1997) conn · cites it 5× “to 1983) § 49-41 et seq. 4 Thereafter, the plaintiff Blakeslee Arpaia Chapman, Inc.”
Electrical Contractors, Inc. v. Department of Education (2012) conn · cites it 4× “" The plaintiffs also refer to the state defendants' authority pursuant to General Statutes § 49-41, which requires that contractors provide to the state or municipality performance bonds for contracts to construct, modify or repair public buildings and public works.”
Commissioner of Labor v. C.J.M. Services, Inc. (2004) conn · cites it 7× “The Appellate Court concluded that the commissioner had authority under § 31-72 to bring any legal action necessary to recover the lost wages on behalf of the subcontractor’s employees, including an action *289 against the general contractor and its surety on the payment bond…”
American Masons' Supply Co. v. F. W. Brown Co. (1978) conn · cites it 4× “Pursuant to General Statutes § 49-41 Brown furnished a bond in the amount of the contract for the protection of persons supplying labor or materials in the prosecution of the work provided for in the contract.”
Okee Industries, Inc. v. National Grange Mutual Insurance (1993) conn · cites it 5× “Pursuant to General Statutes § 49-41, 3 the surety executed a payment *370 bond for a state financed construction project in East Windsor, naming the general contractor as principal and designating the suppliers of labor and materials as the beneficiaries of the bond.”
United Concrete Products, Inc. v. NJR Construction, LLC (2021) connappct · cites it 8× “In general terms, the Little Miller Act, set forth in General Statutes §§ 49-41 through 49-43, ‘‘provide[s] for the furnishing of bonds guaranteeing payment (payment bonds) on public works construction projects, [and was] enacted to protect workers and materials suppliers on…”
Ernst Steel Corp. v. Reliance Insurance (1988) connappct · cites it 6× “(a) When any public work is awarded by a contract for which a payment bond is required by section 49-41, the contract for the public work shall contain the following provisions: (1) A requirement that the general contractor, within thirty days after payment to the contractor by…”
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— Conn. Gen. Stat. § 49-41(a) — 1 case
STEWARD MACH. CO., INC. v. White Oak Corp. (2006) ctd
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