North Dakota Public Improvement Contracts see Bond Increase
Beginning on August 1st of this year, the State of North Dakota bond threshold for public improvement contracts increases from $100,000 to $150,000. Thanks to legislation passed on March 24th, contractors wishing to accept public improvement contracts that are greater than or equal to $150,000 in value must furnish performance and payments bonds on said contracts. Prior to this, no performance or payment bonds were required if the value of the improvement project was only $100,000 or greater. This Legislation will make it easier for contractors to bid on lower value public improvement projects.
A performance bond is a bond issued by a surety guaranteeing the fulfillment of a contract. A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. These bonds often appear in conjunction with performance bonds. When a contractor makes its first proposal to complete a job or project, sometimes a bid bond is required. A bid bond is a debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected. Hence, the submission of a bid is a binding process, meaning that once a bid is submitted, the submitter will perform should the contractor be awarded the contract.
If you are a contractor seeking a bid, payment, or performance bond, see our website at suretybondsagency.com
Introduced by Sen. Kannianen, Campbell, Laffen
Introduced by Rep. Beadle, Sukut
AN ACT to amend and reenact sections 48-01.2-02.1 and 48-01.2-10 of the North Dakota Century Code, relating to public improvement bid and bond thresholds.