PRINTER'S NO. 2940
No. 2202 Session of 1990
INTRODUCED BY DISTLER, CALTAGIRONE, JADLOWIEC, CARLSON, VROON,
ITKIN, FAIRCHILD, SCHULER, ALLEN, WOZNIAK, DEMPSEY, MELIO,
TRELLO, BOWLEY, FARGO, GEIST, VAN HORNE AND MERRY,
JANUARY 2, 1990
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JANUARY 2, 1990
AN ACT
1 Amending the act of June 23, 1931 (P.L.932, No.317), entitled
2 "An act relating to cities of the third class; and amending,
3 revising, and consolidating the law relating thereto,"
4 further providing for regulations concerning contracts and
5 for bonds for protection of labor and materialmen.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 1901(g) of the act of June 23, 1931
9 (P.L.932, No.317), known as The Third Class City Code, reenacted
10 and amended June 28, 1951 (P.L.662, No.164) and amended
11 September 17, 1959 (P.L.906, No.359), is amended to read:
12 Section 1901. Power to Make Contracts; Regulations
13 Concerning Contracts.--* * *
14 (g) Where advertising is required herein, the successful
15 bidder shall be required to furnish a bond or irrevocable letter
16 of credit in an amount sufficient to council with suitable
17 reasonable requirements guaranteeing the performance of the
18 contract[, with surety sufficient to council,] within twenty
1 days after the contract has been awarded, unless council
2 prescribes a shorter period of not less than ten days, and
3 failure to furnish such [bond] security within such time shall
4 [avoid] void the award. The provisions of this subsection
5 requiring successful bidders to furnish [bond] security shall
6 not be mandatory as to contracts for the purchase of motor
7 vehicles or other pieces of equipment but only as to those
8 contracts which involve furnishing of labor and materials.
9 Council may in all cases of contracts or purchases require
10 [bonds] security for performance, delivery, or other terms.
11 * * *
12 Section 2. Section 1907 of the act, amended October 9, 1967
13 (P.L.378, No.170), is amended to read:
14 Section 1907. [Bonds] Security for the Protection of Labor
15 and Materialmen.--It shall be the duty of every city to require
16 any person, copartnership, association, or corporation, entering
17 into a contract with such city for the construction, erection,
18 installation, completion, alteration, repair of, or addition to,
19 any public work or improvement of any kind whatsoever, where the
20 amount of such contract is in excess of one thousand five
21 hundred dollars, before commencing work under such contract, to
22 execute and deliver to such city, in addition to any other
23 [bond] security which may now or hereafter be required by law to
24 be given in connection with such contract, an additional bond or
25 irrevocable letter of credit for the use of any and every
26 person, copartnership, association, or corporation interested,
27 in a sum not less than fifty per centum and not more than one
28 hundred per centum of the contract price, as such city may
29 prescribe, [having as surety thereon one or more surety
30 companies legally authorized to do business in this
19900H2202B2940 - 2 -
1 Commonwealth,] conditioned for the prompt payment of all
2 material furnished and labor supplied or performed in the
3 prosecution of the work, whether or not the said material or
4 labor enter into and become component parts of the work or
5 improvement contemplated. Such additional [bond] security shall
6 be deposited with and held by the city for the use of any party
7 interested therein. Every such additional [bond] security shall
8 provide that every person, copartnership, association, or
9 corporation who, whether as subcontractor or otherwise, has
10 furnished material or supplied or performed labor in the
11 prosecution of the work as above provided, and who has not been
12 paid therefor, may sue in assumpsit on said additional [bond]
13 security, in the name of the city, for his, their, or its use
14 and prosecute the same to final judgment for such sum or sums as
15 may be justly due him, them, or it, and have execution thereof:
16 Provided, however, That the city shall not be liable for the
17 payment of any costs or expense of any suit. The surety or
18 sureties on a bond under this section must be authorized to do
19 business in this Commonwealth.
20 Section 3. This act shall take effect in 60 days.
K29L11MRD/19900H2202B2940 - 3 -