O.C.G.A.
O.C.G.A.

O.C.G.A. § 48-13-32 (2019)

Bonds; procedure; condition precedent to commencing work; amount; blanket or master bonds; amount; registration of completed contracts; fee

✓ 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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(a) Before entering into the performance of any contract the total price of which or the total compensation to be received by the contractor from which amounts to more than $10,000.00, the contractor shall execute and file with the commissioner a good and valid bond with a surety company authorized to do business in this state or with sufficient sureties to be approved by the commissioner, conditioned that all taxes which may accrue to the state and to the political subdivisions of the state on account of the execution and performance of the contract will be paid on demand, including, but not limited to, contributions due under Chapter 8 of Title 34. (b) The execution and filing of the bond required by subsection (a) of this Code section shall be a condition precedent to commencing work on any contract in this state. (c)(1) Every bond required by this Code section shall be in an amount equal to 10 percent of the contract price or of the compensation to be received by the contractor pursuant to the contract. (2)(A) The commissioner may permit or require a contractor to file a blanket or master bond conditioned as provided in subsection (a) of this Code section and in a sum determined proper by the commissioner when:

SPECIFIC, BUSINESS, & OCCUPATION TAXES

(i) The contractor is engaged in a continuing service under multiple contracts or is performing services under a contract on a contingent or unit basis, and the contract price or compensation cannot be determined until after the performance of the contract; or (ii) The commissioner finds that registration of a contract before commencement of work under the contract is impracticable for any reason. (B) No bond pursuant to this paragraph shall be in an amount of less than $10,000.00 with respect to all contracts to be performed during the current calendar year. (C) On or before March 1 in each year, the contractor shall report and register all contracts of $10,000.00 or more completed during the previous calendar year and shall pay the registration fee of $10.00 for each contract.

History

Ga. L. 1961, p. 480, § 3; Code 1933, § 91A-6103, enacted by Ga. L. 1978, p. 309, § 2. Administrative rules and regulations. Contractors, Official Compilation of the Rules and Regulations of the State of Georgia, Rules of Department of Revenue, Sales and Use Tax Division, Substantive Rules and Regulations, Rule 560-12-2-.26. Foreign or Non-Resident Contractors

and Subcontractors, Official Compilation of the Rules and Regulations of the State of Georgia, Rules of Department of Revenue, Sales and Use Tax Division, Substantive Rules and Regulations, Rule 560-12-2-.43.

Annotations

Law reviews. For article discussing legal aspects of investments and trade in Georgia by foreign business enterprises, see 27 Mercer L. Rev. 629 (1976).

JUDICIAL DECISIONS Residency is a mixed question of fact and law, which is generally appropriate for the jury. Lenox Hotel Co. v. Charter Bldrs., Inc., 717 F. Supp. 1558, 1989 U.S. Dist. LEXIS 8236 (N.D. Ga. 1989). Foreign corporation may be resident contractor. - Foreign corporation is not synonymous and cannot be equated with a nonresident corporation. Therefore, simply because a contractor may be considered a foreign corporation because the foreign corporation was incorporated in Texas does not preclude a finding that the foreign corporation is a resident contractor. Lenox Hotel Co. v. Charter Bldrs., Inc., 717 F. Supp. 1558, 1989 U.S. Dist. LEXIS 8236 (N.D. Ga. 1989). Late registration. - Late registration

and payment of all taxes and revenues due the state and the state’s political subdivisions constitutes substantial compliance with the requirements of the Nonresident Contractors Act, O.C.G.A. § 48-13-30 et seq., thus removing the bar to maintenance of an action on the contract. Clover Cable of Ohio, Inc. v. Heywood, 260 Ga. 341, 392 S.E.2d 855, 1990 Ga. LEXIS 266 (1990); Fuller Enters. v. Hardin Constr. Group, Inc., 206 Ga. App. 8, 424 S.E.2d 311, 1992 Ga. App. LEXIS (1992); Underground Festival, Inc. v. McAfee Eng’r Co., 214 Ga. App. 243, 447 S.E.2d 683, 1994 Ga. App. LEXIS 849 (1994), cert. denied, No. S94C1816, 1994 Ga. LEXIS 1181 (Ga. Dec. 2, 1994). Payment of taxes without registration. - Payment of accrued

state and local taxes was not “substantial compliance” with the Nonresident Contractors Act, O.C.G.A. § 48-13-30 et seq., absent registration of a construction

contract with the commissioner. Fuller Enters. v. Hardin Constr. Group, Inc., 206 Ga. App. 8, 424 S.E.2d 311, 1992 Ga. App. LEXIS 1554 (1992).

RESEARCH REFERENCES C.J.S. 11 C.J.S., Bonds, § 7 et seq. ALR. Validity of statute or ordinance which requires liability or indemnity insurance or bond as condition of license for conducting business or profession, 120 A.L.R. 950.

Building contractor’s liability, upon bond or other agreement to indemnify owner, for injury or death of third persons resulting from owner’s negligence, 27 A.L.R.3d 663. What constitutes “public work” within statute relating to contractor’s bond, 48 A.L.R.4th 1170.

Notes of Decisions
Cited in 10 cases, 1987–1994 · leading case: George C. Carroll Constr. Co. v. Langford Constr. Co., 355 S.E.2d 756 (Ga. Ct. App. 1987).
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George C. Carroll Constr. Co. v. Langford Constr. Co., 355 S.E.2d 756 (Ga. Ct. App. 1987). · cites it 20× “Both by answer and motion, Langford asserted that Carroll had no right of access to Georgia courts because it was a nonresident contractor which had failed to comply with the bond requirements of OCGA § 48-13-32. An affidavit established that the construction contracts involved…”
Clover Cable of Ohio, Inc. v. Heywood, 392 S.E.2d 855 (Ga. 1990). · cites it 8× “(b) Before entering into the performance of the contract, a contractor must execute a bond in an amount equal to 10% of the contract price or compensation to be received, OCGA § 48-13-32 (c) (1); when this is impracticable, a blanket or master bond is to be executed.”
Rehco Corp. v. California Pizza Kitchen, Inc., 383 S.E.2d 643 (Ga. Ct. App. 1989). · cites it 4× “,” OCGA § 48-13-32 (a), that “[t]he execution and filing of the bond .”
Lenox Hotel Co. v. Charter Builders, Inc., 717 F. Supp. 1558 (N.D. Ga. 1989). · cites it 17× “Plaintiff maintains that defendants are not entitled to maintain their counterclaims against plaintiff because they have not complied with O.C.G.A. § 48-13-32, Georgia’s Nonresident Contractor’s Statute.”
Mayor of Savannah v. Norman J. Bass Constr. Co., 441 S.E.2d 63 (Ga. 1994). “1 The City moved to dismiss Bass Construction’s action, contending that Bass Construction was a nonresident contractor; that it had not registered with the State Revenue Commissioner as required by OCGA § 48-13-31, nor executed and filed with the Revenue Commissioner the bond…”
Underground Festival, Inc. v. McAfee Eng'g Co., 447 S.E.2d 683 (Ga. Ct. App. 1994). · cites it 4× “OCGA § 48-13-32 (a), (b). Our courts have held that a nonresident contractor may substantially comply with the Act by registering after the completion of a project.”
Dep't of Transp. v. Moseman Constr. Co., 393 S.E.2d 258 (Ga. 1990). · cites it 2× “Although Moseman did not comply prior to beginning its work, it did, as part of its contract with the DOT, sign performance and payment bonds for 100% of the amount of the contract ($28 million) that expressly covered the payment of all State and local taxes.”
Fuller Enter., Inc. v. Hardin Constr. Grp., Inc., 424 S.E.2d 311 (Ga. Ct. App. 1992). · cites it 4× ““A nonresident contractor desiring to engage in the business of contracting in this State must register with the State Revenue Commissioner ‘for each contract when the total contract price or compensation to be received amounts to more than $10,000.00. . . .’ OCGA § 48-13-31.”
Davis Constructors v. Dartco Mfg., Inc., 668 F. Supp. 380 (D. Del. 1987). “One issue, concerning Davis’s ability to file in Georgia, is whether Davis’s subsequent filing of the bond cures its original failure to comply, thereby eliminating any “real question” as to Davis’s ability to bring the action in Georgia.”
Adams v. PPT, Inc., 382 S.E.2d 732 (Ga. Ct. App. 1989). · cites it 2× “) The same phrase is used in OCGA § 48-13-32, which requires contractors to execute a bond with the commissioner.”
— 48-13-32(a) — 2 cases
Lenox Hotel Co. v. Charter Builders, Inc., 717 F. Supp. 1558 (N.D. Ga. 1989). “Plaintiff maintains that defendants are not entitled to maintain their counterclaims against plaintiff because they have not complied with O.C.G.A. § 48-13-32, Georgia’s Nonresident Contractor’s Statute.”
Davis Constructors v. Dartco Mfg., Inc., 668 F. Supp. 380 (D. Del. 1987). “One issue, concerning Davis’s ability to file in Georgia, is whether Davis’s subsequent filing of the bond cures its original failure to comply, thereby eliminating any “real question” as to Davis’s ability to bring the action in Georgia.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.