{"data":{"id":"us-ky/krs-45a.190","jurisdiction":"us-ky","citation":"KRS 45A.190","heading":"Performance bond and payment bond -- Recommendations on whether","body":"performance bond should be required -- Audit of contract performance --\nRelease from performance bond.\n(1) As used in this section, \"agency contract administrator\" means the state ag ency\nemployee responsible for the administration of a contract.\n(2) When a construction contract is awarded in an amount in excess of one hundred\nthousand dollars ($100,000), the following bonds shall be furnished to the\nCommonwealth, and shall be binding on the parties upon the award of the contract:\n(a) A performance bond satisfactory to the Commonwealth executed by a surety\ncompany authorized to do business in this Commonwealth, or otherwise\nsupplied, satisfactory to the Commonwealth, in an amount equal to one\nhundred percent (100%) of the contract price as it may be increased; and\n(b) A payment bond satisfactory to the Commonwealth executed by a surety\ncompany authorized to do business in the Commonwealth, or otherwise\nsupplied, satisfactory to the Commo nwealth, for the protection of all persons\nsupplying labor and material to the contractor or his subcontractors, for the\nperformance of the work provided for in the contract.  The bond shall be in an\namount equal to one hundred percent (100%) of the original contract price.\n(3) When any contract in an amount in excess of one hundred thousand dollars\n($100,000) for commodities, supplies, equipment, or services of any kind, or when\na contract for construction services costing one hundred thousand dollars\n($100,000) or less is proposed for presentation to vendors or contractors, the agency\ncontract administrator shall evaluate whether a performance bond should be\nrequired in the procurement document, and make his recommendation to the\npurchasing agency. The age ncy contract administrator shall note the reason that a\nperformance bond is or is not recommended and his notation shall be a part of the\npermanent record relating to the contract. If a performance bond is required, the\nrequirement shall be included in the  invitation to bid, request for proposal, or other\nprocurement document. The agency contract administrator shall make audits of the\nperformance of contracts upon completion of one -third (1/3) of the contract and\nupon completion of two-thirds (2/3) of the contract. For contracts taking longer than\none (1) year to complete, audits of performance shall be conducted at least\nannually. Before a vendor is released from a performance bond, the agency contract\nadministrator shall review the audits of performance, m ake a final performance\nreview, and promptly determine whether, in his or her opinion, the vendor has fully\ncomplied with the terms of the contract. The opinion of the agency contract\nadministrator shall be made in writing or electronically, set forth the reasons for his\nor her opinion regarding compliance or noncompliance, and be signed by the\nagency contract administrator. This opinion may have an electronic signature. The\nusing agency head shall, after consideration of the performance audits, the final\nperformance review, and the opinion of the agency contract administrator regarding\ncompliance or noncompliance, determine whether to recommend to the purchasing\nagency that the performance bond be released or whether a claim should be made\nagainst the performance bond. This determination of the using agency head shall be\nin writing, signed by the using agency head, and forwarded to the purchasing\nagency. This determination may have an electronic signature and be transmitted\nelectronically. If the recommendat ion of the using agency is not followed by the\npurchasing agency, the purchasing agency shall place a statement in the file\nexplaining why it is not followed.\n(4) Nothing in this section shall be construed to limit the authority of the\nCommonwealth to require a performance bond or other security in addition to those\nbonds, or in circumstances other than specified in subsection (2) or (3) of this\nsection.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54631","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:06Z","sha256":"c2fba3c324d7adcdbb685c3e91386416be2460212f750c009b04f7686cfc2ac4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.187","next":"us-ky/krs-45a.195"},"notice":"GroundRules: Original legal text. Not legal advice."}