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22-9-404. Subcontractor bonds.

Arkansas Code — all titles (historical 2020) · legal_authorities

22-9-404. Subcontractor bonds.

22-9-404. Subcontractor bonds. (a)(1) If required by the general contractor, each subcontractor must provide the general contractor with a payment and performance bond made by a surety company qualified under § 22-9-401 et seq., or a cash bond in a sum equal to the full amount of the subcontractor's bid on a portion of a public works contract when: (A) The subcontractor is the low responsible bidder for that portion of the contract; (B) The state, pursuant to § 22-9-204, requires the general contractor to list the subcontractor in the general contractor's bid; and (C) The work value of the subcontractor's bid is in excess of fifty thousand dollars ($50,000). (2) If the general contractor requires the subcontractor to provide a bond, the subcontractor shall provide the bond to the general contractor within five (5) days after the award of the contract by the general contractor to the subcontractor. (b) If the subcontractor fails to provide a payment and performance bond when required by the general contractor, the subcontractor shall lose the bid and shall pay to the general contractor a penalty equivalent to ten percent (10%) of the subcontractor's bid or the difference between the low bid and the next responsible bid and the next responsible low bid, whichever is less, plus cost of recovery of the penalty, including attorney's fees. The purpose of this section is to compensate the general contractor for the difference between the low bid and the next responsible low bid. (c) The general contractor may enforce this section by a civil action in circuit court. (d) The provisions of this section shall not apply to contracts awarded by the State Highway Commission for construction or maintenance of public highways, roads, or streets.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 22-9-404

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.

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Stable record: arkansas_code:legal_authorities:22-9-404
Source file: gov.ar.code.title.22.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 912d7015da44f5cbcb96eaf4808815b22e5a6cdc5b47d672ebc17a23bf84a2cb

Source location: content.xml paragraph 7039

Stored source content

22-9-404. Subcontractor bonds. (a)(1) If required by the general contractor, each subcontractor must provide the general contractor with a payment and performance bond made by a surety company qualified under § 22-9-401 et seq., or a cash bond in a sum equal to the full amount of the subcontractor's bid on a portion of a public works contract when: (A) The subcontractor is the low responsible bidder for that portion of the contract; (B) The state, pursuant to § 22-9-204, requires the general contractor to list the subcontractor in the general contractor's bid; and (C) The work value of the subcontractor's bid is in excess of fifty thousand dollars ($50,000). (2) If the general contractor requires the subcontractor to provide a bond, the subcontractor shall provide the bond to the general contractor within five (5) days after the award of the contract by the general contractor to the subcontractor. (b) If the subcontractor fails to provide a payment and performance bond when required by the general contractor, the subcontractor shall lose the bid and shall pay to the general contractor a penalty equivalent to ten percent (10%) of the subcontractor's bid or the difference between the low bid and the next responsible bid and the next responsible low bid, whichever is less, plus cost of recovery of the penalty, including attorney's fees. The purpose of this section is to compensate the general contractor for the difference between the low bid and the next responsible low bid. (c) The general contractor may enforce this section by a civil action in circuit court. (d) The provisions of this section shall not apply to contracts awarded by the State Highway Commission for construction or maintenance of public highways, roads, or streets.

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Arkansas Code — all titles (historical 2020) · legal_authorities

22-9-204. Subcontractors exceeding $50,000 — Penalty.

22-9-204. Subcontractors exceeding $50,000 — Penalty. (a) As a condition to performing construction work for and in the State of Arkansas, all prime contractors shall use no other subcontractors when the subcontractors' portion of the project is fifty thousand dollars ($50,000) or more, except those licensed by the Contractors Licensing Board and qualified in: (1) Mechanical, indicative of heating, air conditioning, ventilation, and refrigeration; (2) Plumbing; (3) Electrical; and (4) Roofing. (b)(1) In the event the prime contractor is qualified and licensed by the board, he or she may use his or her own forces to perform those tasks listed in this section as subcontractors in one (1) or more of the trades listed. (2)(A) A subcontractor, including the situation stated in subdivision (b)(1) of this section, may subcontract a portion of the listed work. (B) However, a subcontractor is prohibited from subcontracting the work in its entirety. (c)(1) When the prime contractor makes a definite decision regarding the subcontractors he or she intends to use, he or she shall place the name of each subcontractor in a blank space provided on the form of proposal of his or her bid. (2) In the event that one (1) or more of the subcontractors named by the prime contractor in his or her successful bid thereafter refuses to perform his or her contract or offered contract, the prime contractor may substitute another subcontractor licensed by the board after having obtained prior approval from the architect or engineer and the owner. Additional approval must be obtained from the Building Authority Division for capital improvement projects under its jurisdiction. (d) The prime contractor shall submit written evidence that the substituted contractor is costing the sa

Source: Arkansas Code — historical release 78 (November 6, 2020) · 22-9-204

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 22-9-204. This identifies an authority to review, not proof of applicability.

Arkansas Code — all titles (historical 2020) · legal_authorities

22-9-401. Coverage.

22-9-401. Coverage. (a) All surety bonds required by the State of Arkansas or any subdivisions thereof by any county, municipality, school district, or other local taxing unit, or by any agency of any of the foregoing for the repair, alteration, construction, or improvement of any public works, including, but not limited to, buildings, levees, sewers, drains, roads, streets, highways, and bridges shall be liable on all claims for labor and materials entering into the construction, or necessary or incident to or used in the course of construction, of the public improvements. (b) Claims for labor and materials shall include, but not be limited to, fuel oil, gasoline, camp equipment, food for workers, feed for animals, premiums for bonds and liability and workers' compensation insurance, rentals on machinery, equipment, and draft animals, and taxes or payments due the State of Arkansas or any political subdivision thereof which shall have arisen on account of, or in connection with, wages earned by workers on the project covered by the bond.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 22-9-401

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 22-9-401. This identifies an authority to review, not proof of applicability.