Pennsylvania Act 1931-293 — BOND REQUIRED FOR PUBLIC WORKS PROJECTS

Act text

BOND REQUIRED FOR PUBLIC WORKS PROJECTS
                 Act of Jun. 22, 1931, P.L. 880, No. 293              Cl. 53
                                  AN ACT

     Supplementary to an act, approved March seventh, one thousand
        nine hundred and one (Pamphlet Laws, twenty), entitled "An
        act for the government of cities of the second class," as
        amended by the act of June twentieth, one thousand nine
        hundred and one, authorizing the appointment of a deputy
        mayor, and limiting and prescribing his powers and duties.

        Section 1.  Municipality defined
        The word "municipality," as used in this act, shall be
     construed to mean and include a county of the first class, city,
     incorporated town, and poor district. 1931, June 22, P.L. 880,
     Sec. 1.
        Section 2.  Contractor required to give bond for use of labor
     and materialmen; suit on bond
        It shall be the duty of every municipality to require any
     person, co-partnership, association, or corporation, entering
     into a contract with such municipality for the construction,
     erection, installation, completion, alteration, repair of, or
     addition to, any public work or improvement of any kind
     whatsoever, where the amount of such contract is in excess of
     one thousand ($1,000) dollars, before commencing work under such
     contract, to execute and deliver to such municipality, in
     addition to any other bond which may now or hereafter be
     required by law to be given in connection with such contract, an
     additional bond, for the use of any and every person, co-
     partnership, association, or corporation interested, in a sum
     not less than fifty per centum (50%) and not more than one
     hundred per centum (100%) of the contract price as such
     municipality may prescribe, having as surety thereon one or more
     surety companies legally authorized to do business in this
     Commonwealth, conditioned for the prompt payment of all material
     furnished and labor supplied or performed in the prosecution of
     the work, whether or not the said material or labor enter into
     and become component parts of the work or improvement
     contemplated. Such additional bond shall be deposited with and
     held by the municipality for the use of any party interested
     therein. Every such additional bond shall provide that every
     person, co-partnership, association, or corporation who, whether
     as subcontractor or otherwise, has furnished material or
     supplied or performed labor in the prosecution of the work as
     above provided, and who has not been paid therefor, may sue in
     assumpsit on said additional bond, in the name of the
     municipality, for his, their, or its use, and prosecute the same
     to final judgment, for such sum or sums as may be justly due
     him, them, or it and have execution thereon: Provided, however,
     That the municipality shall not be liable for the payment of any
     costs or expense of any suit. 1931, June 22, P.L. 880, Sec. 2;
     1955, July 22, P.L. 271, Sec. 1.