Public WorksQuestion 121 of 690

On a public works contract that exceeds $25,000, the prime contractor must furnish:

a.A mechanics' lien
b.A payment bond
c.A disciplinary bond
d.No bond — bonds are not used on public works

Explanation

Because subcontractors and suppliers cannot place a lien on public property, the prime contractor on a public works contract over $25,000 must provide a payment bond guaranteeing they are paid.

Law Reference: Civil Code §9550

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