OLR Bill Analysis
AN ACT CONCERNING A SURETY BOND GUARANTEE PROGRAM FOR EMERGING CONTRACTORS.
This bill requires the commissioner of administrative services to establish a surety bond guarantee program for emerging contractors. Participation in the program substitutes for meeting the bonding requirements for public works contracts under current law. (As used in this bill, public works contracts are for the construction, reconstruction, alteration, remodeling, repair or demolition of public buildings or other public works by the state or a municipality, other than highway, bridge, or other construction projects administered by the Department of Transportation. ) An emerging contractor is only eligible to participate in the program for five years from the date of its initial application for the program.
Under the bill, an “emerging contractor” is one who:
1. has not been prequalified under existing law for state-funded public works contracts costing more than $ 500,000 and
2. is unable to (a) obtain bonding required by law to bid on a contract or perform work under such a contract or (b) perform work under such a contract as a substantial subcontractor.
Under the bill, a “substantial subcontractor” is one who performs work valued at more than $ 500,000 for a contractor under a contract for work for the state or a municipality that is estimated to cost more than $ 500,000.
EFFECTIVE DATE: Upon passage
BACKGROUND
Legislative History
On April 9, the Senate referred the bill (file 428) to the Labor and Public Employees Committee, which substituted the above provisions for the original bill. The original bill exempted subcontractors from bonding requirements for state and municipal public works projects when the firm selected as the general contractor had filed the bond.
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea |
18 |
Nay |
0 |
(03/13/2009) |
Labor and Public Employees Committee
Joint Favorable Substitute
Yea |
9 |
Nay |
0 |
(04/16/2009) |