Bill
HB 6754
Overview: HB 6754, AN ACT INCREASING THE THRESHOLD FOR REQUIRING A PERFORMANCE BOND FOR CERTAIN SUBCONTRACTOR BIDS, REF. TO JOINT COMM. ON Government Administration and Elections,
Overview: HB 6754, AN ACT INCREASING THE THRESHOLD FOR REQUIRING A PERFORMANCE BOND FOR CERTAIN SUBCONTRACTOR BIDS, REF. TO JOINT COMM. ON Government Administration and Elections, Introduced: January 28, 2025
Purpose and Intent: The main goal of this bill is to raise the threshold for when a performance bond is required for subcontractor bids on public construction projects, in an effort to reduce administrative burdens and costs for small businesses.
Key Provisions:
- Increases the minimum bid amount threshold for requiring a performance bond from $50,000 to $100,000.
- Maintains the requirement for a performance bond for subcontractor bids exceeding the $100,000 threshold.
- Specifies that the performance bond must be in an amount equal to the full contract price of the subcontractor's work.
Affected Parties and Impacts:
- Subcontractors bidding on public construction projects with bids under $100,000 will no longer be required to obtain a performance bond.
- This change is expected to reduce administrative costs and barriers for small businesses seeking to participate in public projects.
- Public agencies may have slightly increased risk exposure for smaller subcontractor bids without performance bonds.
Procedural and Timeline Considerations:
- The bill has been referred to the Joint Committee on Government Administration and Elections for review and consideration.
- If passed, the increased performance bond threshold would likely take effect for all new public construction projects initiated after the bill's enactment.
Compiled from official sources — confirm details with the bill’s official record.
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