A bill for an act relating to bonds and letters of credit for general contractors and subcontractors.

This bill requires general contractors and subcontractors working on construction projects in Iowa to maintain a $50,000 performance bond or irrevocable letter of credit, filed with the state. It directly affects contractors performing private construction work, ensuring they provide financial security to cover contract failures or violations. Political subdivisions (like cities or counties) cannot demand additional bonds or fees beyond this requirement for private work, except for projects in public right-of-ways. The law does not apply to contractors working for the state or political subdivisions themselves.