Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement

This bill requires contractors and subcontractors working on public construction projects costing over $250,000 to provide a financial guarantee (a surety bond or irrevocable letter of credit) when no public fund has been set up to pay for the project. The bond, equal to the project’s full cost, ensures that workers and suppliers of labor or materials will be paid promptly. It directly affects contractors, subcontractors, and their workers on large public projects where public funds aren’t already allocated. The law applies to all contracts entered into after its effective date.