The following provisions shall be held to be a part of every bond given for the performance
of a contract for the construction of a public improvement, whether said provisions be
inserted in such bond or not, to wit:
[1] The principal and sureties on this bond hereby agree to
pay to all persons, firms, or corporations having contracts directly
with the principal or with subcontractors, all just claims due them
for labor performed or materials furnished, in the performance
of the contract on account of which this bond is given, when the
same are not satisfied out of the portion of the contract price which
the public corporation is required to retain until completion of the
public improvement, but the principal and sureties shall not be
liable to said persons, firms, or corporations unless the claims of
said claimants against said portion of the contract price shall have
been established as provided by law.
[2] Every surety on this bond shall be deemed and held, any
contract to the contrary notwithstanding, to consent without notice:
\n
Tue Dec 09 22:00:41 2025 Iowa Code 2026, Chapter 573 (24, 1)
3 LABOR AND MATERIAL ON PUBLIC IMPROVEMENTS, §573.10\n\n [a] To any extension of time to the contractor in which to
perform the contract.
[b] To any change in the plans, specifications, or contract,
when such change does not involve an increase of more than twenty
percent of the total contract price, and shall then be released only
as to such excess increase.
[c] That no provision of this bond or of any other contract shall
be valid which limits to less than one year from the time of the
acceptance of the work the right to sue on this bond for defects in
the quality of the work or material not discovered or known to the
obligee at the time such work was accepted.
[S13, §1527-s18; C24, 27, 31, 35, 39, §10304; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81,
§573.6]
2021 Acts, ch 76, §137
Referred to in §573.7
\n
Notes of Decisions
Lumberman's Wholesale Co. v. Ohio Farmers Ins. Co., 402 N.W.2d 413 (Iowa 1987).
· cites it 4× “Ohio Farmers Insurance Company was the surety on the labor and material payment bond required of Miami under Iowa Code section 573.6 (1983). On February 22, 1984, Lumberman’s filed a sworn itemized claim with the city clerk pursuant to Iowa Code section 573.”
Econ. Forms Corp. v. City of Cedar Rapids, 340 N.W.2d 259 (Iowa 1983).
· cites it 2× “This complaint overlooks the provision in section 573.6(1) making the performance bond applicable only to claims not satisfied from the retainages.”
L & W Constr. Co. v. Kinser, 99 N.W.2d 276 (Iowa 1959).
· cites it 2× “Section 573.6 requires that every principal and surety shall agree to pay to all persons, firms and corporations having contracts directly with the principal or subcontractors, all claims due for labor and materials furnished in the performance of contracts when the same are not…”
Bd. of Supervisors v. Stand. Appliance Co., 87 N.W.2d 459 (Iowa 1958).
· cites it 2× “The extreme maximum is the amount of the bond plus 20% in accordance with section 573.6, which provides: “The following provisions shall be held to- be a part of every bond given for the performance of a contract for the construction of a public improvement, whether said…”
Cmty. Sch. Dist. of Eldora v. Employers Mut. Cas. Co. of Des Moines, 194 F. Supp. 733 (N.D. Iowa 1961).
· cites it 2× “Section 573.6 of Chapter 573 provides, in part, as follows: “The following provisions shall be held to be a part of every bond given for the performance of a contract for the construction of a public improvement * * *: “1.”
Smith v. Iowa Ass'n of Cmty. Coll. Trs. (Iowa Ct. App. 2024).
· cites it 2× “23, 2020) (alteration in original) (citing Iowa Code §§ 573.6 (1), .22). It is undisputed that both at the time Metro Concrete brought the suit and when the district court decided Graphite Construction’s request for the retainage to be released, the public construction project…”
Cmty. Sch. Dist. of Eldora v. Employers Mut. Cas. Co., 194 F. Supp. 733 (N.D. Iowa 1961).
· cites it 2× “Section 573.6 of Chapter 573 provides, in part, as follows: "The following provisions shall be held to be a part of every bond given for the performance of a contract for the construction of a public improvement * * *: "1.”
— Iowa Code § 573.6(1) — 2 cases
Econ. Forms Corp. v. City of Cedar Rapids, 340 N.W.2d 259 (Iowa 1983).
“This complaint overlooks the provision in section 573.6(1) making the performance bond applicable only to claims not satisfied from the retainages.”
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.