Iowa Code

Iowa Code § 573.2 (2026)

Public improvements — bond — waiver and remedies

✓ current as of July 2026

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1. Contracts for the construction of a public improvement shall, when the contract price equals or exceeds twenty-five thousand dollars, be accompanied by a bond, with surety, conditioned for the faithful performance of the contract, and for the fulfillment of other requirements as provided by law. The bond may also be required when the contract price does not equal that amount. However, if a contractor provides a performance or maintenance bond as required by a public improvement contract governed by this chapter and subsequently the surety company becomes insolvent and the contractor is required to purchase a new bond, the contractor may apply for reimbursement from the governmental agency that required a second bond and the claims shall be reimbursed from funds allocated for road construction purposes. 2. If the requirement for a bond is waived pursuant to section 12.44, a person, firm, or

Tue Dec 09 22:00:41 2025 Iowa Code 2026, Chapter 573 (24, 1) §573.2, LABOR AND MATERIAL ON PUBLIC IMPROVEMENTS 2\n\ncorporation, having a contract with the targeted small business or with subcontractors of the targeted small business, for labor performed or materials furnished, in the performance of the contract on account of which the bond was waived, is entitled to any remedy provided under this chapter. When a bond has been waived pursuant to section 12.44, the remedies provided for under this subsection are available in an action against the public corporation. [C24, 27, 31, 35, 39, §10300; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.2; 82 Acts, ch 1096, §1] 86 Acts, ch 1246, §32; 88 Acts, ch 1032, §1 Referred to in §12.44, 573.3

Notes of Decisions

Cited in 11 cases (2 in the last 5 years), 1980–2024 · leading case: Star Equip., Ltd. v. State of Iowa, Iowa Dep't of Transp., 843 N.W.2d 446 (Iowa 2014).

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Star Equip., Ltd. v. State of Iowa, Iowa Dep't of Transp., 843 N.W.2d 446 (Iowa 2014). · cites it 142× “See Iowa Code §§ 573.2 , .5 9 (1987). This bond can be the object of a subcontractor’s or materialman’s claim, see Iowa Code § 573.”

Iowa Supply Co. v. Grooms & Co. Constr., 428 N.W.2d 662 (Iowa 1988). · cites it 2× “See Iowa Code §§ 573.2 , .5 (1987). This bond can be the object of a subcontractor’s or materialman’s claim, see Iowa Code § 573.”

Elview Constr. Co. v. North Scott Cmty. Sch. Dist., 373 N.W.2d 138 (Iowa 1985). “Plaintiffs’ basic argument seems to be, “What if something had gone wrong with the project?” It certainly was wrong for the board not to obtain performance bonds on each of the contracts; the board took an unnecessary risk.”

Accurate Controls, Inc. v. Cerro Gordo Cnty. Bd. of Supervisors, 627 F. Supp. 2d 976 (N.D. Iowa 2009). · cites it 2× “Moreover, even after the retainage has been released, the County Board remains the entity to which the bond required by Iowa Code § 573.2 shall run. Iowa Code § 573.”

Dobbs v. Knudson, Inc., 292 N.W.2d 692 (Iowa 1980). “Knudson furnished a performance bond as required by § 573.2, The Code, with Universal Surety Company (“Universal”) as surety.”

Lennox Indus., Inc. v. City of Davenport, 320 N.W.2d 575 (Iowa 1982). “Defendant Insurance Company of North America (INA) provided a performance bond as required by sections 573.2 — .5, The Code. The job specifications required Lennox heating and cooling units.”

Employers Mut. Cas. Co. v. City of Marion, 577 N.W.2d 657 (Iowa 1998). · cites it 2× “See Iowa Code § 573.2 (1995). The defendants are the City of Marion and subcontractors who filed claims after the city canceled its contract with a contractor who had agreed to construct a public improvement for the city.”

Smith v. Iowa Ass'n of Cmty. Coll. Trs. (Iowa Ct. App. 2024). · cites it 4× “” Iowa Code § 573.2 (1). The bond is mandatory and runs to the public corporation.”

Polar Insulation, Inc. v. Garling Constr., Inc. & Douglas Demeulenaere (Iowa Ct. App. 2016). · cites it 2× “See Iowa Code § 573.2 (providing remedies for disputes regarding construction of public improvements).”

S.M. Hentges & Sons Inc. v. City of Iowa City (Iowa Ct. App. 2020). · cites it 2× “See Iowa Code §§ 573.2 , 573.3; Star Equip., 843 N.”

Rochon Corp. of Iowa, Inc. n/k/a Graphite Constr. Grp., Inc. v. Des Moines Area Cmty. Coll. (Iowa 2024). · cites it 2× “” Iowa Code § 573.2 (1); see also id. §§ 573.”

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