California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 3 — Public Work of Improvement, Chapter 5 — Payment Bond, Section 9550

(a) A direct contractor that is awarded a public works contract involving an expenditure in excess of twenty-five thousand dollars ($25,000) shall, before commencement of work, give a payment bond to and approved by the officer or public entity by whom the contract was awarded.

(b) A public entity shall state in its call for bids that a payment bond is required for a public works contract involving an expenditure in excess of twenty-five thousand dollars ($25,000).

(c) A payment bond given and approved under this section will permit performance of and provide coverage for work pursuant to a public works contract that supplements the contract for which the bond is given, if the requirement of a new bond is waived by the public entity.

(d) For the purpose of this section, a design professional is not deemed a direct contractor and is not required to give a payment bond.

(e) This section does not apply to a public works contract with a “state entity” as defined in subdivision (d) of Section 7103 of the Public Contract Code.

Notes

Requires a direct contractor awarded a public works contract exceeding $25,000 to give an approved payment bond before work begins and requires the bid call to state that requirement. Exempts design professionals and contracts with a defined state entity; allows the bond to cover supplemental contract work when the public entity waives a new bond.

Use as reference

Lexinter.net | California Code, Civil Code - CIV § 9550 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-3/chapter-5/section-9550

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