Indiana Performance Bond

For Indiana public works projects, the performance bond surety cannot be released until one year after final settlement with the contractor. This one-year post-completion period applies to state projects (Indiana Code § 4-13.6-7-7), Title 5 projects (IC § 5-16-5.5-4), and political subdivision projects (IC § 36-1-12-14). The bond remains active throughout the entire construction period and continues through the warranty/defect liability period. Any claims against the surety must typically be filed within this one-year window after final settlement.

For Indiana state public works projects managed by the Department of Administration, a performance bond is mandatory for projects estimated at $200,000 or more. For projects under $200,000, it may be required at the agency's discretion. Political subdivisions typically require performance bonds equal to the contract price (waivable for projects under $250,000 with alternative security). INDOT requires performance bonds at 100% of the bid amount for most projects, with exceptions for small contracts under $100,000 in specific categories. Many larger private construction projects also require performance bonds, though there's no statutory mandate for private work.

Indiana performance bonds are typically required at 100% of the total contract price for public works projects. Indiana Code § 4-13.6-7-7 mandates 100% bonding for state projects $200,000+, and similar 100% requirements apply to political subdivision projects and INDOT contracts. The state allows incremental bonding (multiple bonds totaling 100% of contract price) if needed. For private projects, the bond amount is negotiated between the contractor and project owner but commonly follows the 100% standard.