Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement

This bill requires contractors and subcontractors working on public improvements over $250,000 to post a surety bond or irrevocable letter of credit if no public fund has been set up to pay for the project. The law mandates that the chief financial officer of the public owner enforce this requirement to guarantee payment to the contractor, their subcontractors, and anyone supplying labor or materials. This measure directly affects private entities undertaking construction or demolition projects for the state or public corporations that lack an established financing source. The provision ensures that workers and suppliers have a financial guarantee for their claims if the project fails to pay, applying to contracts signed on or after the bill's effective date.