PART III. CLAIMS OF SUBCONTRACTORS,
MATERIALMEN, AND LABORERS ON PUBLIC WORKS
§2241. Written contract and bond
A.(1) Whenever a public entity enters into a contract in excess of five
thousand dollars for the construction, alteration, or repair of any public works, the
official representative of the public entity shall reduce the contract to writing and
have it signed by the parties. When an emergency as provided in R.S. 38:2212(D)
is deemed to exist for the construction, alteration, or repair of any public works and
the contract for such emergency work is less than fifty thousand dollars, there shall
be no requirement to reduce the contract to writing.
(2) For each contract in excess of twenty-five thousand dollars per project,
the public entity shall require of the contractor a bond with good, solvent, and
sufficient surety in a sum of not less than fifty percent of the contract price for the
payment by the contractor or subcontractor to claimants as defined in R.S. 38:2242.
The bond furnished shall be a statutory bond and no modification, omissions,
additions in or to the terms of the contract, in the plans or specifications, or in the
manner and mode of payment shall in any manner diminish, enlarge, or otherwise
modify the obligations of the bond. The bond shall be executed by the contractor
with surety or sureties approved by the public entity and shall be recorded with the
contract in the office of the recorder of mortgages in the parish where the work is to
be done not later than thirty days after the work has begun.
B. All requirements and obligations of this Section, except the requirement
to furnish a bond, shall be applicable to any contractor or subcontractor for whom
bond requirements are waived under the provisions of R.S. 38:2216(C) or (D).
C.(1) The payment provisions of all bonds furnished for public work contracts
described in this Part, regardless of form or content, shall be construed as and
deemed statutory bond provisions. Except as provided in Paragraph (2) of this
Subsection, nothing in this Part shall be construed to preclude a surety who has
furnished such a bond from asserting any defense to the principal obligation that its
principal could assert except lack of capacity or discharge in bankruptcy of the
principal obligor. Any such bond which fails to contain any of the requirements set
forth in this Part shall be deemed to incorporate all of the requirements set forth in
this Section. Language in any such bond containing any obligations beyond the
requirements set forth in this Part shall be deemed surplusage and read out of such
bond. Sureties and contractors executing payment bonds for public works contracts
under this Part shall be immune from liability for or payment of any claims not
required by this Part.
(2) The surety shall be obligated and required to issue payment to a
materialman for claims by a materialman under the following conditions:
(a) The claim is for material delivered in conformity with material
specifications provided in the order for such material.
(b) No sooner than forty-five days after delivery of the material, the
materialman sends a notice of nonpayment to the general contractor, the surety, and
the owner.
(c) The materialman has not been paid in full on or before ninety days after
delivery of the material.
(3) If the requirements of Paragraph (2) of this Subsection are satisfied, the
surety shall pay the materialman within ten days after the materialman sends a
payment notice to the surety.
(4) The claim of a materialman and right to payment as provided in this
Subsection is in addition to and not in derogation of any other rights, claims, or
remedies available to a materialman in this Part.
(5) Any notice required under this Section shall be served by mailing the
same by registered or certified mail, postage prepaid, in an envelope addressed to the
last known address of the general contractor, the surety, and the owner. The return
receipt indicating that registered mail or certified mail was properly addressed to the
last known address of the general contractor, the surety, and the owner and deposited
in the United States mail regardless of whether the registered or certified mail was
actually delivered, refused, or unclaimed satisfies the notice provision of this Section.
D. A bond issued pursuant to this Section shall not create, nor shall such
bond be construed to create, any cause of action in favor of the public entity, or any
third party, for personal injury or property damages sustained by any third party
during the effective period of the bond. Nothing contained herein shall in any way
limit the liability on the bond for the performance of the work pursuant to the
contract in question; however, to the extent that the public contract in question
should contain any provisions for a hold harmless or indemnity agreement, or both,
by the contractor, in favor of the public entity, for personal injury or property
damages sustained by third parties, the hold harmless or indemnity agreement, or
both, shall not be deemed or construed to be secured by the bond, conditioned upon
the concurrence of the contractor and the surety.
E. Any provisions of a bond issued pursuant to this Section which are
contrary to Subsection D hereof are hereby declared to be contrary to the public
policy of the state of Louisiana and are null and void.
F. The provisions of this Section shall not be subject to waiver by contract.
G. All contracts for projects that are directly associated with the preparation
of Super Bowl LIX are exempt from the provisions of this Section, except for
contracts for projects in excess of one hundred fifty thousand dollars. The provisions
of this Subsection shall terminate on February 10, 2025.
Amended by Acts 1975, No. 344, §1; Acts 1979, No. 389, §1; Acts 1980, No.
615, §1; Acts 1985, No. 244, §1; Acts 1986, No. 248, §1; Acts 1986, No. 888, §1;
Acts 1991, No. 749, §1, eff. July 18, 1991; Acts 1995, No. 540, §1; Acts 1997, No.
119, §1; Acts 1999, No. 673, §1; Acts 2024, No. 761, §1, eff. June 19, 2024.