Our construction contractor cannot obtain the 100 percent of construction cost bond requirement. Can this be waived?
The requirement for 100 percent performance and payment bonds is a state law; the Office of the Budget cannot waive that requirement. Some projects have been completed that failed to get the 100 percent coverage. In those instances, we could not release any RACP reimbursements until the project was completely finished and the owner received all waivers of liens from the various contractors, thereby making the bond coverage moot.
