NCS Blog

Statute Changes 2017

Statute Changes in the First Half of 2017

A handful of states have enacted changes to statute that could impact potential mechanic’s lien and bond claim claimants. Though most of these changes aren’t drastic, a little change can make a big splash.
Arkansas, Idaho, Indiana, Kansas, North Dakota, Oklahoma, Virginia, Washington & Nova Scotia have made changes this year. Read on to learn more!

Changes in Payment Bond Thresholds & Bonding Requirements

Idaho: SB1074 | Bond Thresholds
Idaho SB1074, effective 7-1-17, requires payment and performance bonds for public projects of $50,000.00 or more. Click here for legislation.

Indiana: HB1117 | Payment Bond Exception
Indiana HB1117 was effective upon passage.  Under Title 5, a state educational institution may waive the requirement for a contractor to obtain a payment bond if the amount to be paid under the contract is less than $500,000.00.   Click here for legislation

North Dakota: SB2146 | Public Improvement Bond Thresholds
North Dakota SB2146, effective 8-1-17, requires payment and performance bonds for public projects exceeding $150,000.00. Click here for legislation.

Virginia: H2017 | Payment Bond Threshold
VA H2017, effective 7-1-17, amends the thresholds for requiring a performance and payment bond. A bond will be required on general contracts exceeding $500,000.00, and on general contracts for Commonwealth transportation projects exceeding $350,000.00. On non-transportation projects between $100,000.00 and $300,000.00, the bond requirement may be waived if the contractor has been prequalified by the public entity. Description

Washington: SB5734 | Payment Bond Threshold
Washington SB5734 provides that contracts up to $150,000.00 may be exempt from the performance and payment bond requirement, as long as 10% of the contract amount is retained by the owner for 30 days after the date of final acceptance. Effective 7-23-17.  Description

Washington: HB1538 | Bond for Subcontractor’s Portion of Retainage
Effective 7-23-17, prior to formal acceptance of the project, a subcontractor may request that the prime contractor provide a bond for the subcontractor’s portion of the retainage. The bond must be provided within 30 days. The prime contractor may withhold the bond premium for the portion of the subcontractor’s retainage bond. Description

Public & Private Partnerships (P3s)

Oklahoma: SB430 | Public & Private Facilities & Infrastructure Act
Oklahoma SB430 creates Title 74 of the Oklahoma Statutes and provides procedures and requirements for qualifying infrastructure projects. Effective 11-1-17. Description

Kansas: SB55 | Public-Private Partnership (P3) Agreements
Effective 7-1-17, Kansas statute will require a contractor, on a public-private partnership project valued at more than $100,000, to furnish a payment and performance bond equal to the full contract amount. The bonds must allow for the recovery of attorney fees and related expenses. Description

Residential Notices

Arkansas: HB1750 | Residential Notice
Arkansas HB1750 - Effective 6-7-17, the exceptions as to when a notice is required for a lien upon a residential project have changed. If the sale is a direct sale, the notice is not required. A direct sale will be defined as when the property owner orders materials or services directly from you, and, you are not a home improvement contractor or a residential building contractor. Description



Nova Scotia: Notices of Substantial Performance/Subcontract Completion
Effective 6-30-17, Schedule A under Section 48 of the Nova Scotia Builders’ Lien act will require the owner of a project to post a notice of substantial performance within 10 days after the date on which a contract between a contractor and an owner is substantially performed. Additionally, the owner must post a notice of subcontract completion within 10 days after the date on which a subcontract is certified complete. The notices must be posted on the Construction Association of Nova Scotia’s website and at the job site office, if there is one. Exceptions are provided for certain owner-occupied, single-family dwellings.

If you have questions, please do not hesitate to contact NCS!