Contractors' Bonds
Public Contracts
Section 19
Failure of government entity to obtain payment bond -- Right of action -- Notice.
     14-1-19.   Failure of government entity to obtain payment bond -- Right of action -- Notice.
     If the state or a political subdivision fails to obtain a payment bond, it shall, upon demand by a person who has furnished labor or supplied materials to the contractor or subcontractor for the work provided for in a contract which is subject to Section 14-1-18, promptly make payment to that person. That person shall have a direct right of action against the state or the political subdivision in any court having jurisdiction in any county in which the contract was to be performed, upon giving written notice to the state or political subdivision within 90 days from the date on which such person performed the last of the labor or supplied the last of the material for which claim is made. The person shall state in the notice a designation of the construction project and its location, the amount claimed, and the name of the party for whom the labor was performed or to whom the material was supplied. The notice shall be served by registered or certified mail, postage prepaid, on the state agency or political subdivision that is a party to the contract. No such action may be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by such person.

Enacted by Chapter 218, 1987 General Session
Download Code Section Zipped WordPerfect 14_01_001900.ZIP 2,199 Bytes