SB 1 - This act modifies the bonding requirements for certain design-build highway projects. Under current law, design-build highway projects require that bid bonds be equal to five percent of the bid and performance bonds be in the amount equal to the contract price. Under the proposed act, the current statutory requirements may be modified by the commission for any design-build highway project contract that is designated as a "design-build-finance-maintain" project, and for which the contract with the design-builder exceeds 25 years. For these types of projects, the commission shall require the design-builder to provide bonds or other securities in such terms, durations, and amounts as the commissions determines as adequate for the commission's protection. Bid or proposal bonds shall be in an amount not less than $5,000,000. Under the act, performance bonds shall be in an aggregate amount of $200,000,000 or 25% of the construction work cost, whichever is less. Payment bonds for such design-build projects shall be in the aggregate amount equal to a reasonable estimate of the total amount payable for the cost of construction work unless the commission determines that amount is impractical. If the commission makes this determination, the commission shall establish the amount of the payment bond, but in no case shall payment bonds be in an amount less than the aggregate amount of the performance bonds.
This act contains an emergency clause.
STEPHEN WITTE