16.24.020 Contract performance and payment bonds.
A. When a construction contract is awarded in excess of $100,000, the following bonds or security shall be delivered to the Borough and shall become binding on the parties upon the execution of the contract:
1. A performance bond satisfactory to the Borough, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the Borough, in an amount equal to 100 percent of the price specified in the contract; and
2. A payment bond satisfactory to the Borough, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the Borough, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price specified in the contract.
B. Nothing in this section shall be construed to limit the authority of the Borough to require a performance bond or other security in addition to those bonds, or in circumstances other than specified in subsection (A)(1) of this section.
C. Any person who has furnished labor or material to the contractor or subcontractors for the work provided in the contract, for which a payment bond is furnished under this section, and who has not been paid in full within 90 days from the date on which that person performed the last of the labor or supplied the material, shall have the right to sue on the payment bond for any amount unpaid at the time the suit is instituted and to prosecute the action for the amount due that person. However, any person having a contract with a subcontractor of the contractor, but no express or implied contract with the contractor furnishing the payment bond, shall have a right of action upon the payment bond upon giving written notice to the contractor within 90 days from the date on which that person performed the last of the labor or supplied the material. That person shall state in the notice the amount claimed and the name of the party to whom the material was supplied or for whom the labor was performed. The notice shall be served personally or by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business.
D. Every suit instituted upon a payment bond shall be brought in the superior court of the state of Alaska, fourth judicial district at Fairbanks, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in any such suit. (Ord. 82-69, 1982. 2004 Code § 16.45.020.)