O.C.G.A.

O.C.G.A. § 13-10-60 (2019)

Large public works contracts; requirement for payment bonds

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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Except as otherwise provided in Title 32, payment bonds shall be required for all state public works construction contracts with an estimated contract amount greater than $100,000.00; provided, however, that the state may require a payment bond for public works construction contracts that are estimated at $100,000.00 or less. No public works construction contract requiring a payment bond shall be valid for any purpose unless the contractor gives such payment bond; provided, however, that in lieu of such payment bond, the state, in its discretion, may accept a cashier’s check, certified check, or cash for the use and protection of all subcontractors and all persons supplying labor, materials, machinery, and equipment in the prosecution of work provided in the contract. The payment bond or other security accepted in lieu of a payment bond shall be in the amount of at least the total amount payable by the terms of the initial contract and shall be increased if requested by the state as the contract amount is increased.

History

(Code 1981, § 13-10-60, enacted by Ga. L. 2001, p. 820, § 1.)

Annotations

Law reviews. - For survey article on construction law for the period from June 1,

2002 through May 31, 2003, see 55 Mercer L. Rev. 85 (2003).

Notes of Decisions

Cited in 6 cases, 2003–2016 · leading case: Bd. of Regents of Univ. Sys. v. Brooks, 749 S.E.2d 23 (Ga. Ct. App. 2013).

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Bd. of Regents of Univ. Sys. v. Brooks, 749 S.E.2d 23 (Ga. Ct. App. 2013). · cites it 4× “” See OCGA § 13-10-60 (“[P]ayment bonds shall be required for all state public works construction contracts with an estimated contract amount greater than $100,000.”

State of Georgia Dep't of Corr. v. Developers Sur. & Indem. Co., 763 S.E.2d 868 (Ga. 2014). · cites it 2× “Thus, at best, it would be inconsistent, and at worst, unjust and impractical, to require a surety’s bond to ensure payment or performance in favor of the State in the case of a defaulted construction contract with the State, but then to bar the surety from exercising its right…”

S. Elec. Supply Co. v. Trend Constr., Inc., 578 S.E.2d 279 (Ga. Ct. App. 2003). · cites it 2× “498, § 4, effective April 20, 2000, and OCGA §§ 13-10-60 through 13-10-65. 3 The payment bond makes no mention of “substantial completion” but did foreclose suits “instituted on this bond after one year from the date of the final certificate of the Architect.”

Pioneer Constr., Inc. v. May (In re May), 518 B.R. 99 (Bankr. S.D. Ga. 2014). · cites it 2× “” See O.C.G.A. §§ 13-10-60, et seq.; (The Ohio Casualty Insurance Company Payment Bond 3-913-375, Pl.”

Bd. of Regents of the Univ. Sys. of Georgia v. James Brooks (Ga. Ct. App. 2013). · cites it 4× “While the term “public works construction contracts” is not defined in Chapter 10 of Title 13, the term is defined in the statutory scheme governing local government public works construction, which also requires the payment bonds for public works projects.”

J. Squared Plumbing Co., Inc. v. City of Atlanta, 786 S.E.2d 894 (Ga. Ct. App. 2016). · cites it 2× “Moreover, the City required the Surety to provide proof of its bonding capacity; the City confirmed that the Surety was certified through the United States Department of the Treasury; and both the Bond and the notarized document confirming the Surety’s bonding capacity, on their…”

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