Section 80IAC9-6-6. Payment bonds

   (a) The commission shall require the contractor to execute a good and sufficient payment bond to the commission in an amount equal to one hundred percent (100%) of the total contract price. The bond shall include at least the following provisions:

(1) The contractor and its successors and assigns, and all subcontractors and their successors and assigns, whether by operation of law or otherwise, shall pay all indebtedness that may accrue to any person on account of any labor or service performed or materials furnished in relation to the commission work.

(2) The bond shall directly ensure to the benefit of subcontractors, laborers, suppliers, and those performing service or who may have furnished or supplied labor, material, or service in relation to the commission work.

(3) No change, modification, omission, or addition in or to the terms or conditions of the contract, plans, specifications, drawings, or profile or any irregularity or defect in the contract or in the procedures preliminary to the letting and awarding of the contract shall affect or operate to release or discharge the surety in any way.

(4) The provisions and conditions of this rule shall be a part of the terms of the contract and bond.

  (b) The commission may:

(1) permit the bond given by the contractor to provide for incremental bonding in the form of multiple or chronological bonds that, if taken as a whole, equal the total contract price; and

(2) accept bonds provided on forms:

(A) specified by the commission; or

(B) given by surety companies.

  (c) The commission shall:

(1) hold the bond of a contractor for the use and benefit of any claimant having an interest in it and entitled to its benefits; and

(2) not release sureties of a contractor until the expiration of one (1) year after the final settlement with the contractor.

(State Fair Commission; 80 IAC 9-6-6; filed Nov 7, 2016, 3:46 p.m.: 20161207-IR-080160210FRA)