- Private Construction: Rights are limited to laborers. Any contractor in charge of the construction, reconstruction, extension, modification or repair of a work, building or structure whose estimated cost as specified in the construction permit issued by the Permit Office of the Planning Board is greater than fifteen thousand dollars ($15,000) shall post a payment bond in favor of the Secretary of Labor and Human Resources, which shall be binding and effective on and after the date the work is started. The amount of this payment bond shall not be less than twenty percent (20%) of the estimated cost of the work under construction.
- The Payment bond shall be posted by the contractor in cash, by certified check, or through the surety of a bonding company authorized to do business in Puerto Rico, and said payment bond shall secure jointly and severally with the contractor, to the extent of liability covered by the bond, (1) the payment, to the workers and employees of the contractor, of the salaries and wages earned by them in their work; and (2) the payment, to the persons selling, supplying, or delivering equipment, tools, and materials for the work, of the price or value of the materials, equipment, and tools supplied, sold, or delivered. The amount of this payment bond shall be not less than one-half of the total value of the contract, plus any amplification, enlargement, or addition thereto.
- After 6 months the bond may be cancelled, unless some judicial claim under ยงยง 47-58 of this title is found pending. In such case, the bond shall not be cancelled until final judgment has been entered with respect to the pending claim or claims and same have been satisfied to the limit of the liability of the bond and the bondsmen.
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