Idaho Code

Idaho Code § 54-1926 (2026)

Performance and payment bonds required of contractors for public buildings and public works of the state, political subdivisions and other public instrumentalities — Requirements for bonds — Governmental obligations.

✓ current as of May 2026

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Performance and payment bonds required of contractors for public buildings and public works of the state, political subdivisions and other public instrumentalities — Requirements for bonds — Governmental obligations.

Before any contract equal to or greater than fifty thousand dollars ($50,000) for the construction, alteration, or repair of any public building or public work or improvement of the state of Idaho, or of any county, city, town, municipal corporation, township, school district, public educational institution, or other political subdivision, public authority, or public instrumentality, or of any officer, board, commission, institution, or agency of the foregoing, is executed, the person to whom such contract was awarded shall furnish to the state of Idaho, or to such county, city, town, municipal corporation, township, school district, public educational institution, or other political subdivision, public authority, or public instrumentality, or to such officer, board, commission, institution, or agency thereof, bonds that shall become binding upon the execution of the contract, and the person to whom the contract was awarded is hereinafter designated as "contractor":

(1) A performance bond in any amount to be fixed by the contracting body, but in no event less than eighty-five percent (85%) of the contract amount conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions thereof. Said bond shall be solely for the protection of the public body executing the contract.

(2) A payment bond in an amount to be fixed by the contracting body but in no event less than eighty-five percent (85%) of the contract amount, solely for the protection of persons supplying labor or materials, or renting, leasing, or otherwise supplying equipment to the contractor or his subcontractors in the prosecution of the work provided for in such contract.

(3) Public bodies requiring a performance bond or payment bond in excess of fifty percent (50%) of the total contract amount shall not be authorized to withhold from the contractor or subcontractor any amount exceeding five percent (5%) of the total amount payable as retainage. Further, the public body shall release to the contractor any retainage for those portions of the project accepted by the contracting public body and the contractors as complete within thirty (30) days after such acceptance. Contractors, contracting with subcontractors pursuant to contract work with a public body, shall not be authorized to withhold from the subcontractor any amount exceeding five percent (5%) of the total amount payable to the subcontractor as retainage. The contractor shall remit the retainage to the subcontractor within thirty (30) days after completion of the subcontract.

Each bond shall be executed by a surety company or companies duly authorized to do business in this state, or the contractor may deposit any of the type of government obligations listed in subsection (2)(h) of section 54-1901, Idaho Code, in lieu of furnishing a surety company performance or payment bond or bonds. In the case of contracts of the state or a department, board, commission, institution, or agency thereof the aforesaid bonds shall be payable to the state, or particular state agency where authorized. In case of all other contracts subject to this chapter, the bonds shall be payable to the public body concerned.

Said bonds shall be filed in the office of the department, board, commission, institution, agency or other contracting body awarding the contract.

Nothing in this section shall be construed to limit the authority of the state of Idaho or other public body hereinabove mentioned to require a performance bond or other security in addition to these, or in cases other than the cases specified in this chapter.

It shall be illegal for the invitation for bids, or any person acting or purporting to act, on behalf of the contracting body to require that such bonds be furnished by a particular surety company, or through a particular agent or broker.

Notes of Decisions

Cited in 12 cases, 1974–2017 · leading case: Oldcastle Precast, Inc. v. Parktowne Constr., Inc., 128 P.3d 913 (Idaho 2005).

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Oldcastle Precast, Inc. v. Parktowne Constr., Inc., 128 P.3d 913 (Idaho 2005). · cites it 20× “Prior to being awarded the contract, Park Towne had obtained a payment bond from Developers Surety and Indemnity Company, (Developers Surety) as required by Idaho Code § 54-1926 . On September 7, 2001, Oldcastle filed a lawsuit against Park Towne and Developers Surety to recover…”

McKay Constr. Co. v. Ada Cnty. Bd. of Cnty. Commissioners, 580 P.2d 412 (Idaho 1978). · cites it 28× “II McKay contends that the county was obliged under I.C. § 54-1926 to require that Whitmore furnish a performance bond executed by a surety authorized to do business in Idaho.”

Beco Corp. v. Roberts & Sons Constr. Co., 760 P.2d 1120 (Idaho 1988). · cites it 4× “] I.C. § 54-1926 (Supp. 1987) (emphasis added).”

City of Weippe v. Yarno, 528 P.2d 201 (Idaho 1974). · cites it 4× “” I.C. § 54-1926 states in applicable part that before certain public works contracts are awarded, bonds shall become binding upon the award: “(1) A performance bond in any amount to be fixed by the contracting body, but in no event less than 50 per cent of the contract amount…”

Val & Laree Westover v. Jase Cundick, 393 P.3d 593 (Idaho 2017). · cites it 2× “We reversed and remanded the case for further proceedings concluding: (1) “I.C. § 54-1926 requires a bond executed by a surety authorized to do business in Idaho, and the county was not at liberty to waive that requirement in favor of some alternative form of security;” and (2)…”

Beco Constr. Co. v. City of Idaho Falls, 865 P.2d 950 (Idaho 1993). · cites it 2× “§§ 54-1915 to -1919 provide for the suspension and revocation of a contractor’s license; and (6) I.C. § 54-1926 requires a contractor to post performance and payment bonds pri-' or to contracting for any public building or public works.”

LaGrand Steel Prods. Co. v. A.S.C. Constructors, Inc., 702 P.2d 855 (Idaho Ct. App. 1985). · cites it 2× “As required by I.C. § 54-1926, A.S.C. obtained a payment bond, purchasing it from Travelers Indemnity Company.”

Eimco Div. v. United Pac. Ins., 710 P.2d 672 (Idaho Ct. App. 1985). · cites it 2× “In compliance with I.C. § 54-1926, North American obtained a payment bond, purchasing it from United Pacific Insurance Co.”

Consol. Supply Co. v. Babbitt, 534 P.2d 466 (Idaho 1975). · cites it 2× “is awarded to any person, he shall furnish to (the State of Idaho or any such political subdivision), .”

H-K Contractors, Inc. v. City of Firth, 611 P.2d 1009 (Idaho 1979). · cites it 6× “I.C. § 54-1926, provides that under such circumstances any public body shall require the contractor to post a bond “for the protection of persons supplying labor or materials to the contractor or his subcontractors in the prosecution of the work * * The City failed to require…”

Evco Sound & Elec., Inc. v. Seaboard Sur. Co., 223 P.3d 740 (Idaho 2009). “It copied Sections 54-1926 and 54-1927 from the Miller Act.”

Consol. Concrete Co. v. Empire West Constr. Co., 596 P.2d 106 (Idaho 1979). · cites it 2× “Pursuant to I.C. § 54-1926, the contractor and its surety, defendant-appellant Employers Mutual Liability Insurance Company of Wisconsin, filed their bond guaranteeing payment to all laborers and suppliers of the project.”

— Idaho Code § 54-1926(1) — 1 case

Oldcastle Precast, Inc. v. Parktowne Constr., Inc., 128 P.3d 913 (Idaho 2005). “Prior to being awarded the contract, Park Towne had obtained a payment bond from Developers Surety and Indemnity Company, (Developers Surety) as required by Idaho Code § 54-1926 . On September 7, 2001, Oldcastle filed a lawsuit against Park Towne and Developers Surety to recover…”

— Idaho Code § 54-1926(2) — 1 case

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