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BONDS OF CONTRACTORS ON PUBLIC WORKS

FRIDAY, MARCH 8, 1935

HOUSE OF REPRESENTATIVES,

COMMITTEE ON THE JUDICIARY, SUBCOMMITTEE No. 1,

Washington, D. C.

The subcommittee met at 10:30 a. m., Hon. John E. Miller (chairman) presiding.

Mr. MILLER. The committee will come to order. The subcommittee has voted to direct its attention to H. R. 2068, introduced by Mr. Taylor; and H. R. 6018, by Mr. Mead; and H. R. 5054, by Mr. Dockweiler; and H. R. 4461, by Mr. Collins. All these bills deal with the same general subject; and it was the thought of the subcommittee that we would like to have the reaction and opinion of members in reference to those bills that deal with the general subject of requiring a bond for the benefit of laborers and materialmen who deal with subcontractors on public works.

(The bills under consideration follow :)

[H. R. 2068, 74th Cong., 1st sess.]

A BILL For the protection of subcontractors, labor, and materials employed in public

works

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That every contract with the United States for the construction or repair of public work, where the amount is in excess of $2,000, shall be accompanied―

(1) By a performance bond, with good and sufficient surety or sureties, upon which suit may be brought by the United States within twelve months from final settlement under the contract.

(2) By an additional bond, with good and sufficient surety or sureties, including, among other things, the obligation that the contractor shall promptly make payment to all persons supplying labor or material for such work. Every person, copartnership, association, or corporation who, whether as subcontractor or otherwise, has supplied labor or material for such work, whether or not the said labor or material enter into and become component parts of the work or improvement contemplated, and who has not been paid therefor, shall have the right to sue on said additional bond in the name of the United States for his, their, or its use and benefit, in the appropriate court of the United States for the district in which the contract was to be performed, irrespective of the amount in controversy, and not elsewhere, and to prosecute the same to final judgment for such sum or sums as may be justly due him, them, or it, and to have execution thereon: Provided, however, That the United States shall not be liable for the payment of any costs or expenses of any such suit.

No such suit shall be commenced prior to ninety days from the date upon which the said person, copartnership, association, or corporation furnished, supplied, or performed the last of the labor or material for which the said claim is made, and every such suit shall be commenced not later than twelve months from the date of final settlement under the contract.

Any such person, copartnership, association, or corporation who has no contractual relationship, express or implied, with the contractor furnishing the

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