Iowa SF2376 mandates annual performance bonds or letters of credit for general contractors and subcontractors engaged in construction.

Iowa SF2376 requires general contractors and subcontractors involved in construction to obtain and maintain an annual performance bond or irrevocable letter of credit of $50,000. These financial instruments must be payable to the state of Iowa and executed by a surety company or financial institution authorized to operate in the state. The state or a political subdivision may enforce these requirements for private construction work and bring actions on the bond or letter of credit for harm caused by non-performance or law violations.

Iowa SF2376 mandates annual performance bonds or letters of credit for general contractors and subcontractors engaged in construction.

Iowa SF2376 requires general contractors and subcontractors involved in construction to obtain and maintain an annual performance bond or irrevocable letter of credit of $50,000. These financial instruments must be payable to the state of Iowa and executed by a surety company or financial institution authorized to operate in the state. The state or a political subdivision may enforce these requirements for private construction work and bring actions on the bond or letter of credit for harm caused by non-performance or law violations.