573.2 Public improvements — bond — waiver and remedies. 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, withsurety, conditioned for the faithful performance of the contract, and for the fulfillment ofother requirements as provided by law. The bond may also be required when the contractprice does not equal that amount. However, if a contractor provides a performance ormaintenance bond as required by a public improvement contract governed by this chapterand subsequently the surety company becomes insolvent and the contractor is required topurchase a new bond, the contractor may apply for reimbursement from the governmentalagency that required a second bond and the claims shall be reimbursed from funds allocatedfor road construction purposes. 2. If the requirement for a bond is waived pursuant to section 12.44, a person, firm, or corporation, having a contract with the targeted small business or with subcontractors of thetargeted small business, for labor performed or materials furnished, in the performance ofthe contract on account of which the bond was waived, is targeted small business or with subcontractors of thetargeted small business, for labor performed or materials furnished, in the performance ofthe contract on account of which the bond was waived, is entitled to any remedy providedunder this chapter. When a bond has been waived pursuant to section 12.44, the remediesprovided 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, §1Referred to in §12.44, 573.3 Sat Dec 23 11:08:01 2023 Iowa Code 2024, Section 573.2 (21, 0)
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