Public contracts: bonds.

The State Contract Act requires that every contract provide for the filing of separate performance and payment bonds, as provided, and that the performance and payment bonds each equal at least 12 of the contract price, subject to certain exceptions. Existing law gives the Department of Transportation discretion to specify that, for projects with a contract price greater than $250,000,000, the payment bond shall be the lesser of 12 the contract price or $500,000,000. This bill would authorize the High-Speed Rail Authority to provide that, for projects with a contract price greater than $250,000,000, the payment bond be the lesser of 12 the contract price or $500,000,000.