SB202

Senate Bill 202 amends existing Arkansas law regarding statutory bonding requirements for construction projects overseen by the State Highway Commission. The bill clarifies the requirements for successful bidders to provide surety bonds to ensure the completion of highway contracts and the protection of state interests. Specifically, it establishes that contractors must furnish surety bonds in a penal sum of at least one-fourth of the total contract price. Additionally, the legislation outlines the conditions under which the commission may accept personal bonds in lieu of traditional surety bonds. In the event of a personal bond being accepted, the contractor is required to deposit specific types of government or road improvement bonds into escrow as collateral security equal to twenty-five percent of the contract value.