Sec. 4. (a) This section does not apply to a contract entered into by a state educational institution if:
(1) the amount to be paid under the contract is less than five hundred thousand dollars ($500,000); and
(2) the state educational institution agrees to waive the requirement.
(b) At the time of entering into any contract covered by the provisions of this chapter, the contractor shall furnish a valid performance bond which is acceptable to the state agency involved in an amount equal to the contractor's total contract price. If it is acceptable to the state agency involved, this performance bond may provide for incremental bonding in the form of multiple or chronological bonds which, when taken as a whole, equal the total contract price.
(c) The surety on the bond shall not be released for a period of one (1) year after final settlement with the contractor. No change, modification, omission or addition in and to the terms or conditions of said contract, plans, specifications, drawings or profile or any irregularity or defect in said contract or in the proceedings preliminary to the letting and awarding thereof shall in any way affect or operate to release or discharge the surety.
Formerly: Acts 1972, P.L.44, SEC.1. As amended by Acts 1978, P.L.15, SEC.3; P.L.135-2017, SEC.2.
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