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Bill

SB 2372

Performance and payment bonds; increase the lump-sum threshold to $75,000.00 for.

2025 Regular Session

Mississippi bill raising construction bond requirements from unspecified threshold to $75,000 reduces contractor obligations but increases financial risk for workers and project owners.

Died In Committee
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Bill Summary · SB 2372

Legislative bill overview

SB 2372 would increase the threshold amount for when performance and payment bonds are required on construction projects from their current level to $75,000. Performance bonds guarantee a contractor will complete work as specified, while payment bonds ensure workers and suppliers are paid. This change would mean fewer construction projects would be subject to bonding requirements.

Why is this important

Performance and payment bonds protect project owners, workers, and suppliers from financial loss if contractors fail to complete work or pay bills. Raising the threshold reduces regulatory burden on smaller contractors but potentially increases financial risk for owners and workers on mid-sized projects ($50,000-$75,000 range, if the previous threshold was lower). The construction industry has significant worker safety and payment equity implications.

Potential points of contention

  • Worker and supplier protection: Removing bonding requirements leaves workers and material suppliers more vulnerable to unpaid wages and bills on larger projects
  • Small contractor burden: Current threshold may already disadvantage smaller contractors who struggle to afford bonds, but higher thresholds don't solve this cost issue
  • Project owner risk: Owners of $50,000-$75,000 projects lose financial recourse protections if contractors default

Compiled from official sources — confirm details with the bill’s official record.

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