An Act To Amend the Public Works Contractors' Surety Bond Law of 1971
Sec. 1. 14 MRSA §871, sub-§3, as amended by PL 1993, c. 436, §1, is further amended to read:
When required by the contracting authority, the contractor shall furnish bid security in an amount which the contracting authority considers sufficient to guarantee that if the work is awarded the contractor will contract with the contracting agency.
The bid security may be in the form of United States postal money order, official bank checks, cashiers' checks, certificates of deposit, certified checks, money in escrow, bonds from parties other than bonding companies subject to an adequate financial standing documented by a financial statement of the party giving the surety, bond or bonds from a surety company or companies duly authorized to do business in the State.
The bid security may be required at the discretion of the contracting authority to assure ensure that the contractor is bondable.
The bid securities other than bid bonds must be returned to the respective unsuccessful bidders. The bid security of the successful bidder must be returned to the contractor upon the execution and delivery to the contracting agency of the contract and performance and payment bonds, in terms satisfactory to the contracting agency for the due execution of the work.
In the case of contracts on behalf of the State, the bonds must be payable to the State and deposited with the contracting authority. In the case of all other contracts subject to this section, the bonds must be payable to and deposited with the contracting body awarding the contract.
Sec. 2. 14 MRSA §871, sub-§3-A is enacted to read:
(1) Issued in favor of the State or other contracting authority by a federally insured financial institution;
(2) In a form satisfactory to the State or other contracting authority; and
(3) In an amount equal to the full amount of the contract.
(1) Maintain a long-term unsecured debt rating of at least "A3" issued by Moody's Investors Service, Inc. or "A-" issued by Standard and Poor's Corporation;
(2) Maintain a short-term commercial paper rating within the 3 highest categories established by Moody's Investors Service, Inc. or Standard and Poor's Corporation; or
(3) Be certified in writing by the Superintendent of Financial Institutions that the financial institution's capital ratios, as calculated in the most recent quarterly consolidated report of condition and income, meet or exceed the requirements for well-capitalized financial institutions.
Sec. 3. 14 MRSA §871, sub-§4, as amended by PL 1973, c. 625, §82, is further amended to read:
Every action on said payment bond shall be brought in the county in which the principal or surety has its principal place of business. No Any such action may not be commenced after the expiration of one year from the date on which the last of the labor was performed or material was supplied for the payment of which such the action is brought . Provided , except that in the case of a material supplier, where when the amount of the claim is not ascertainable due to the unavailability of final quantity estimates, such the action may be commenced before the expiration of one year from the date on which the final quantity estimates are determined. The notice of claim from the material supplier to the contractor furnishing the payment bond shall must be filed before the expiration of 90 days following the determination by the contracting authority of the final quantity estimates.
The contracting body and the agent in charge of its office shall furnish to anyone making written application therefor who states that he the person has supplied labor or materials for such work , and payment therefor has not been made, or that he the person is being sued on any such bond, or that he the person is the surety thereon, a certified copy of such the bond and the contract for which it was given, which copy shall be is prima facie evidence of the contents, execution and delivery of the original. Applicants shall pay for such the certified copies such reasonable fees as the contracting body or the agent in charge of its office fixes to cover the actual cost of preparation thereof.
Sec. 4. 14 MRSA §871, sub-§6 is enacted to read: