Platinum Bonds Insurance Agency
Research before you apply.The Iowa Payment Bond protects subcontractors, suppliers, and laborers by guaranteeing they'll be paid for work or materials provided on a construction project. If the general contractor fails to pay, the surety company steps in to cover valid claims. This bond is mandatory for public projects over $25,000 and optiona…
The Iowa Payment Bond protects subcontractors, suppliers, and laborers by guaranteeing they'll be paid for work or materials provided on a construction project. If the general contractor fails to pay, the surety company steps in to cover valid claims. This bond is mandatory for public projects over $25,000 and optiona…
General contractors and construction companies working on public improvement contracts exceeding $25,000 in Iowa. Required under Iowa Code Chapter 573 (Iowa's "Little Miller Act"). May also be required by private project owners to protect against mechanic's liens.
Payment bonds guarantee that a contractor will pay subcontractors, laborers, and material suppliers. Typical Pricing:. • Small contracts: Commonly around 1–5% of the contract value. • Larger contracts: Rates generally scale lower as contract size increases. • Payment bonds: Often paired with performance bonds at a combined rate. • Full underwriting required: Credit, financials, experience, and bonding history reviewed. Payment bonds are required on most public proje…
Full underwriting required — typically 3–5 business days
Iowa Payment Bonds are typically required at 100% of the contract value for public improvement contracts exceeding $25,000. Under Iowa Code Chapter 573, the bond amount must be not less than 75% of the contract price (or as low as 25% for contracts with no interim payments). The exact amount is set by the public entity awarding the contract.
Subcontractors, suppliers, laborers, and any person or company that furnished labor, materials, or services for the construction project can file a claim against the Iowa Payment Bond. This includes those with direct contracts with the general contractor as well as those with indirect contracts (sub-subcontractors and material suppliers to subcontractors).
Under Iowa Code Chapter 573, a lawsuit against the Iowa Payment Bond must be filed within 60 days after final completion of the project. However, the suit cannot be filed earlier than 30 days after completion (unless demanded by notice). Claimants should act promptly to preserve their rights under the bond.
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