{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4337.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4337.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4337.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4337.html"}],"law_id":79610,"edition_id":1,"section_id":79610,"structure_id":12805,"section_number":"2.2-4337","catch_line":"Performance and payment bonds","history":"1982, c. 647, \u00a7 11-58; 1984, c. 160; 2001, c. 844; 2002, cc. 556, 643, 682; 2006, cc. 694, 925; 2011, c. 789; 2012, c. 783; 2017, c. 789; 2022, c. 565; 2023, c. 211.","full_text":"A\n\nUpon the award of any (i) nontransportation-related public construction contract exceeding $500,000 awarded to any prime contractor or (ii) transportation-related project authorized pursuant to Article 2 (\u00a7 33.2-208 et seq.) of Chapter 2 of Title 33.2 exceeding $350,000 that is partially or wholly funded by the Commonwealth, the contractor shall furnish to the public body the following bonds:1\n\nA performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications, and conditions of the contract, unless the contract is an indefinite delivery or quantity contract with a local public body and the local public body adopts an ordinance pursuant to subsection G.2\n\nA payment bond in the sum of the contract amount, unless the contract is an indefinite delivery or quantity contract with a local public body and the local public body adopts an ordinance pursuant to subsection G. The bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in furtherance of the work provided for in the contract, and shall be conditioned upon the prompt payment for all materials furnished or labor supplied or performed in the furtherance of the work.B\n\nEach of the bonds shall be executed by one or more surety companies selected by the contractor that are authorized to do business in Virginia.C\n\nIf the public body is the Commonwealth, or any agency or institution thereof, the bonds shall be payable to the Commonwealth of Virginia, naming also the agency or institution thereof. Bonds required for the contracts of other public bodies shall be payable to such public body.D\n\nEach of the bonds shall be filed with the public body that awarded the contract, or a designated office or official thereof.E\n\nNothing in this section shall preclude a public body from requiring payment or performance bonds for construction contracts below $500,000 for nontransportation-related projects or $350,000 for transportation-related projects authorized under Article 2 (§ 33.2-208 et seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the Commonwealth.F\n\nNothing in this section shall preclude the contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts that are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.G\n\nFor indefinite delivery or quantity contracts awarded pursuant to subsection A, any locality may by ordinance allow the contractor awarded such contract to furnish to the local public body a performance bond and a payment bond, each of which shall be equal to the dollar amount of the individual tasks identified in the underlying contract. Such contractor shall not be required to pay the performance bond and payment bond in the sum of the contract amount if the contracting locality has adopted such an ordinance pursuant to this subsection. For purposes of this section, “indefinite delivery or quantity contract” means a contract that only requires performance of contractual obligations upon the request of the locality and which establishes an annual cap for the total work that may be authorized for such contract.","order_by":null,"text":{"0":{"id":285236,"text":"Upon the award of any (i) nontransportation-related public construction contract exceeding $500,000 awarded to any prime contractor or (ii) transportation-related project authorized pursuant to Article 2 (\u00a7 33.2-208 et seq.) of Chapter 2 of Title 33.2 exceeding $350,000 that is partially or wholly funded by the Commonwealth, the contractor shall furnish to the public body the following bonds:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":285237,"text":"A performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications, and conditions of the contract, unless the contract is an indefinite delivery or quantity contract with a local public body and the local public body adopts an ordinance pursuant to subsection G.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":285238,"text":"A payment bond in the sum of the contract amount, unless the contract is an indefinite delivery or quantity contract with a local public body and the local public body adopts an ordinance pursuant to subsection G. The bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in furtherance of the work provided for in the contract, and shall be conditioned upon the prompt payment for all materials furnished or labor supplied or performed in the furtherance of the work.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":285239,"text":"Each of the bonds shall be executed by one or more surety companies selected by the contractor that are authorized to do business in Virginia.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":285240,"text":"If the public body is the Commonwealth, or any agency or institution thereof, the bonds shall be payable to the Commonwealth of Virginia, naming also the agency or institution thereof. Bonds required for the contracts of other public bodies shall be payable to such public body.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":285241,"text":"Each of the bonds shall be filed with the public body that awarded the contract, or a designated office or official thereof.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"6":{"id":285242,"text":"Nothing in this section shall preclude a public body from requiring payment or performance bonds for construction contracts below $500,000 for nontransportation-related projects or $350,000 for transportation-related projects authorized under Article 2 (§ 33.2-208 et seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the Commonwealth.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"7":{"id":285243,"text":"Nothing in this section shall preclude the contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts that are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"8":{"id":285244,"text":"For indefinite delivery or quantity contracts awarded pursuant to subsection A, any locality may by ordinance allow the contractor awarded such contract to furnish to the local public body a performance bond and a payment bond, each of which shall be equal to the dollar amount of the individual tasks identified in the underlying contract. Such contractor shall not be required to pay the performance bond and payment bond in the sum of the contract amount if the contracting locality has adopted such an ordinance pursuant to this subsection. For purposes of this section, “indefinite delivery or quantity contract” means a contract that only requires performance of contractual obligations upon the request of the locality and which establishes an annual cap for the total work that may be authorized for such contract.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":12805,"edition_id":1,"name":"Contract Formation and Administration","identifier":"2","label":"article","depth":5,"order_by":1,"parent_id":12752,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":177013,"object_type":"structure","relational_id":12805,"identifier":"2","token":"2.2\/II\/B\/43\/2","url":"\/2.2\/II\/B\/43\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12752,"edition_id":1,"name":"Virginia Public Procurement Act","identifier":"43","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176989,"object_type":"structure","relational_id":12752,"identifier":"43","token":"2.2\/II\/B\/43","url":"\/2.2\/II\/B\/43\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12751,"edition_id":1,"name":"Transaction of Public Business","identifier":"B","label":"part","depth":3,"order_by":1,"parent_id":12750,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176445,"object_type":"structure","relational_id":12751,"identifier":"B","token":"2.2\/II\/B","url":"\/2.2\/II\/B\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12750,"edition_id":1,"name":"Administration of State Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176253,"object_type":"structure","relational_id":12750,"identifier":"II","token":"2.2\/II","url":"\/2.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60713,"structure_id":12805,"section_number":"2.2-4303","catch_line":"Methods of procurement","url":"\/2.2-4303\/","token":"2.2\/II\/B\/43\/2\/2.2-4303","metadata":false},{"id":61675,"structure_id":12805,"section_number":"2.2-4303.01","catch_line":"High-risk contracts; definition; review","url":"\/2.2-4303.01\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.01","metadata":false},{"id":63722,"structure_id":12805,"section_number":"2.2-4303.1","catch_line":"Architectural and professional engineering term contracting; limitations","url":"\/2.2-4303.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.1","metadata":false},{"id":54690,"structure_id":12805,"section_number":"2.2-4303.2","catch_line":"Job order contracting; limitations","url":"\/2.2-4303.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.2","metadata":false},{"id":60269,"structure_id":12805,"section_number":"2.2-4304","catch_line":"Joint and cooperative procurement","url":"\/2.2-4304\/","token":"2.2\/II\/B\/43\/2\/2.2-4304","metadata":false},{"id":67205,"structure_id":12805,"section_number":"2.2-4305","catch_line":"Competitive procurement by localities on state-aid projects","url":"\/2.2-4305\/","token":"2.2\/II\/B\/43\/2\/2.2-4305","metadata":false},{"id":85651,"structure_id":12805,"section_number":"2.2-4306","catch_line":"Repealed","url":"\/2.2-4306\/","token":"2.2\/II\/B\/43\/2\/2.2-4306","metadata":false},{"id":80442,"structure_id":12805,"section_number":"2.2-4308.1","catch_line":"Purchase of owner-controlled insurance in construction projects","url":"\/2.2-4308.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4308.1","metadata":false},{"id":77240,"structure_id":12805,"section_number":"2.2-4308.2","catch_line":"Registration and use of federal employment eligibility verification program required; debarment","url":"\/2.2-4308.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4308.2","metadata":false},{"id":76051,"structure_id":12805,"section_number":"2.2-4309","catch_line":"Modification of the contract","url":"\/2.2-4309\/","token":"2.2\/II\/B\/43\/2\/2.2-4309","metadata":false},{"id":59798,"structure_id":12805,"section_number":"2.2-4310","catch_line":"Discrimination prohibited; participation of small, women-owned, minority-owned, military family-owned, and service disabled veteran-owned businesses and employment services organizations","url":"\/2.2-4310\/","token":"2.2\/II\/B\/43\/2\/2.2-4310","metadata":false},{"id":83482,"structure_id":12805,"section_number":"2.2-4310.1","catch_line":"Awards as a result of any authorized enhancement or remedial measure; requirements","url":"\/2.2-4310.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.1","metadata":false},{"id":70958,"structure_id":12805,"section_number":"2.2-4310.2","catch_line":"Executive branch agency's goals for participation by small businesses; requirements","url":"\/2.2-4310.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.2","metadata":false},{"id":77101,"structure_id":12805,"section_number":"2.2-4310.3","catch_line":"Fiscal data pertaining to certain enhancement or remedial measures","url":"\/2.2-4310.3\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.3","metadata":false},{"id":62578,"structure_id":12805,"section_number":"2.2-4311","catch_line":"Employment discrimination by contractor prohibited; required contract provisions","url":"\/2.2-4311\/","token":"2.2\/II\/B\/43\/2\/2.2-4311","metadata":false},{"id":67743,"structure_id":12805,"section_number":"2.2-4311.1","catch_line":"Compliance with federal, state, and local laws and federal immigration law; required contract provisions","url":"\/2.2-4311.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.1","metadata":false},{"id":82121,"structure_id":12805,"section_number":"2.2-4311.2","catch_line":"Compliance with state law; foreign and domestic businesses authorized to transact business in the Commonwealth","url":"\/2.2-4311.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.2","metadata":false},{"id":70336,"structure_id":12805,"section_number":"2.2-4311.3","catch_line":"Compliance with state law; 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penalty for failure to timely complete","url":"\/2.2-4334\/","token":"2.2\/II\/B\/43\/2\/2.2-4334","metadata":false},{"id":84415,"structure_id":12805,"section_number":"2.2-4335","catch_line":"Public construction contract provisions barring damages for unreasonable delays declared void","url":"\/2.2-4335\/","token":"2.2\/II\/B\/43\/2\/2.2-4335","metadata":false},{"id":55647,"structure_id":12805,"section_number":"2.2-4336","catch_line":"Bid bonds; construction contracts","url":"\/2.2-4336\/","token":"2.2\/II\/B\/43\/2\/2.2-4336","metadata":false},{"id":79610,"structure_id":12805,"section_number":"2.2-4337","catch_line":"Performance and payment bonds","url":"\/2.2-4337\/","token":"2.2\/II\/B\/43\/2\/2.2-4337","metadata":false},{"id":86516,"structure_id":12805,"section_number":"2.2-4338","catch_line":"Alternative forms of security","url":"\/2.2-4338\/","token":"2.2\/II\/B\/43\/2\/2.2-4338","metadata":false},{"id":66839,"structure_id":12805,"section_number":"2.2-4339","catch_line":"Bonds on other than construction contracts","url":"\/2.2-4339\/","token":"2.2\/II\/B\/43\/2\/2.2-4339","metadata":false},{"id":54251,"structure_id":12805,"section_number":"2.2-4340","catch_line":"Action on performance bond","url":"\/2.2-4340\/","token":"2.2\/II\/B\/43\/2\/2.2-4340","metadata":false},{"id":65780,"structure_id":12805,"section_number":"2.2-4340.1","catch_line":"Statute of limitations on construction contracts","url":"\/2.2-4340.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.1","metadata":false},{"id":85767,"structure_id":12805,"section_number":"2.2-4340.2","catch_line":"Statute of limitations on architectural and engineering contracts","url":"\/2.2-4340.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.2","metadata":false},{"id":56940,"structure_id":12805,"section_number":"2.2-4341","catch_line":"Actions on payment bonds; waiver of right to sue","url":"\/2.2-4341\/","token":"2.2\/II\/B\/43\/2\/2.2-4341","metadata":false},{"id":71233,"structure_id":12805,"section_number":"2.2-4342","catch_line":"Public inspection of certain records","url":"\/2.2-4342\/","token":"2.2\/II\/B\/43\/2\/2.2-4342","metadata":false}],"previous_section":{"id":55647,"structure_id":12805,"section_number":"2.2-4336","catch_line":"Bid bonds; construction contracts","url":"\/2.2-4336\/","token":"2.2\/II\/B\/43\/2\/2.2-4336","metadata":false},"next_section":{"id":86516,"structure_id":12805,"section_number":"2.2-4338","catch_line":"Alternative forms of security","url":"\/2.2-4338\/","token":"2.2\/II\/B\/43\/2\/2.2-4338","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4337\/","history_text":"

This law was first created in 1982. The record of its establishment is cataloged in chapter 647 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1982 \u201cActs\u201d aren\u2019t available online. It has been modified 9 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1984, chapter 160; in 2001, chapter 844<\/a>; in 2002, chapters 556<\/a>, 643<\/a>, and 682<\/a>; in 2006, chapters 694<\/a> and 925<\/a>; in 2011, chapter 789<\/a>; in 2012, chapter 783<\/a>; in 2017, chapter 789<\/a>; in 2022, chapter 565<\/a>; in 2023, chapter 211<\/a>.<\/p>","references":[{"id":73905,"section_number":"2.2-2275","catch_line":"Competition in award of contracts; contractors to give surety; terms of contracts","order_by":null,"url":"\/2.2-2275\/"},{"id":70640,"section_number":"56-575.9","catch_line":"Comprehensive agreement","order_by":null,"url":"\/56-575.9\/"}],"refers_to":[{"id":79659,"section_number":"33.2-208","catch_line":"Location of routes","order_by":null,"url":"\/33.2-208\/"}],"permalink":{"id":177223,"object_type":"law","relational_id":79610,"identifier":"2.2-4337","token":"2.2\/II\/B\/43\/2\/2.2-4337","url":"\/2.2-4337\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4337\/","token":"2.2\/II\/B\/43\/2\/2.2-4337","dublin_core":{"Title":"Performance and payment bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4337","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Upon the award of any (i) nontransportation-related public construction<\/span> contract<\/span> exceeding $500,000 awarded to any prime contractor or (ii) transportation-related project authorized pursuant to Article 2 (\u00a7 33.2-208<\/a> et seq.) of Chapter 2 of Title 33.2 exceeding $350,000 that is partially or wholly funded by the Commonwealth, the contractor shall furnish to the public body<\/span> the following bonds<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A performance bond<\/span> in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications, and conditions of the contract, unless the contract is an indefinite delivery or quantity contract<\/span> with a local public body<\/span> and the local public body<\/span> adopts an ordinance<\/span> pursuant to subsection G. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A payment bond<\/span> in the sum of the contract amount, unless the contract is an indefinite delivery or quantity contract<\/span> with a local public body<\/span> and the local public body<\/span> adopts an ordinance<\/span> pursuant to subsection G. The bond<\/span> shall be for the protection of claimants who have and fulfill contracts<\/span> to supply labor or materials<\/span> to the prime contractor to whom the contract was awarded, or to any subcontractors, in furtherance of the work provided for in the contract, and shall be conditioned upon the prompt payment for all materials<\/span> furnished or labor supplied or performed in the furtherance of the work. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each of the bonds<\/span> shall be executed by one or more surety<\/span> companies selected by the contractor that are authorized to do business<\/span> in Virginia. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the public body<\/span> is the Commonwealth, or any agency or institution thereof, the bonds<\/span> shall be payable to the Commonwealth of Virginia, naming also the agency or institution thereof. Bonds<\/span> required for the contracts<\/span> of other public bodies shall be payable to such public body<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Each of the bonds<\/span> shall be filed with the public body<\/span> that awarded the contract, or a designated office or official thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Nothing in this section shall preclude a public body<\/span> from requiring payment or performance bonds<\/span> for construction<\/span> contracts<\/span> below $500,000 for nontransportation-related projects or $350,000 for transportation-related projects authorized under Article 2 (§ 33.2-208<\/a> et seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Nothing in this section shall preclude the contractor from requiring each subcontractor to furnish a payment bond<\/span> with surety<\/span> thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts<\/span> that are directly with the subcontractor for performing labor and furnishing materials<\/span> in the prosecution<\/span> of the work provided for in the subcontract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> For indefinite delivery or quantity contracts<\/span> awarded pursuant to subsection A, any locality may by ordinance<\/span> allow the contractor awarded such contract to furnish to the local public body<\/span> a performance bond<\/span> and a payment bond<\/span>, each of which shall be equal to the dollar amount of the individual tasks identified in the underlying contract. Such contractor shall not be required to pay the performance bond<\/span> and payment bond<\/span> in the sum of the contract amount if the contracting locality has adopted such an ordinance<\/span> pursuant to this subsection. For purposes of this section, “indefinite delivery or quantity contract<\/span>” means a contract that only requires performance of contractual obligations upon the request of the locality and which establishes an annual cap for the total work that may be authorized for such contract. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPERFORMANCE AND PAYMENT BONDS (\u00a7 2.2-4337)\n\nA. Upon the award of any (i) nontransportation-related public construction\ncontract exceeding $500,000 awarded to any prime contractor or (ii)\ntransportation-related project authorized pursuant to Article 2 (\u00a7 33.2-208 et\nseq.) of Chapter 2 of Title 33.2 exceeding $350,000 that is partially or wholly\nfunded by the Commonwealth, the contractor shall furnish to the public body the\nfollowing bonds:\n\n 1. A performance bond in the sum of the contract amount conditioned upon the\n faithful performance of the contract in strict conformity with the plans,\n specifications, and conditions of the contract, unless the contract is an\n indefinite delivery or quantity contract with a local public body and the\n local public body adopts an ordinance pursuant to subsection G.\n\n 2. A payment bond in the sum of the contract amount, unless the contract is an\n indefinite delivery or quantity contract with a local public body and the\n local public body adopts an ordinance pursuant to subsection G. The bond shall\n be for the protection of claimants who have and fulfill contracts to supply\n labor or materials to the prime contractor to whom the contract was awarded,\n or to any subcontractors, in furtherance of the work provided for in the\n contract, and shall be conditioned upon the prompt payment for all materials\n furnished or labor supplied or performed in the furtherance of the work.\n\nB. Each of the bonds shall be executed by one or more surety companies selected\nby the contractor that are authorized to do business in Virginia.\n\nC. If the public body is the Commonwealth, or any agency or institution thereof,\nthe bonds shall be payable to the Commonwealth of Virginia, naming also the\nagency or institution thereof. Bonds required for the contracts of other public\nbodies shall be payable to such public body.\n\nD. Each of the bonds shall be filed with the public body that awarded the\ncontract, or a designated office or official thereof.\n\nE. Nothing in this section shall preclude a public body from requiring payment\nor performance bonds for construction contracts below $500,000 for\nnontransportation-related projects or $350,000 for transportation-related\nprojects authorized under Article 2 (§ 33.2-208 et seq.) of Chapter 2 of\nTitle 33.2 and partially or wholly funded by the Commonwealth.\n\nF. Nothing in this section shall preclude the contractor from requiring each\nsubcontractor to furnish a payment bond with surety thereon in the sum of the\nfull amount of the contract with such subcontractor conditioned upon the payment\nto all persons who have and fulfill contracts that are directly with the\nsubcontractor for performing labor and furnishing materials in the prosecution\nof the work provided for in the subcontract.\n\nG. For indefinite delivery or quantity contracts awarded pursuant to subsection\nA, any locality may by ordinance allow the contractor awarded such contract to\nfurnish to the local public body a performance bond and a payment bond, each of\nwhich shall be equal to the dollar amount of the individual tasks identified in\nthe underlying contract. Such contractor shall not be required to pay the\nperformance bond and payment bond in the sum of the contract amount if the\ncontracting locality has adopted such an ordinance pursuant to this subsection.\nFor purposes of this section, “indefinite delivery or quantity\ncontract” means a contract that only requires performance of contractual\nobligations upon the request of the locality and which establishes an annual cap\nfor the total work that may be authorized for such contract.\n\nHISTORY: 1982, c. 647, \u00a7 11-58; 1984, c. 160; 2001, c. 844; 2002, cc. 556, 643,\n682; 2006, cc. 694, 925; 2011, c. 789; 2012, c. 783; 2017, c. 789; 2022, c. 565;\n2023, c. 211.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}