Surety bonds • Iowa
Iowa Public Improvement Bonds (Iowa Code Chapter 573): Requirements and Claims
Under Iowa Code chapter 573, public improvement contracts of $25,000 or more must be accompanied by a bond of at least 75% of the contract price. Claims are generally filed within 30 days after completion and final acceptance, and retainage is capped at 3% of each payment.
This guide covers the bond, claims, retainage, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
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The bond requirement
| Rule | Detail |
|---|---|
| Threshold | Contracts of $25,000 or more must have a bond; smaller contracts may require one |
| Amount | Not less than 75% of the contract price |
| Reduced amount | At least 25% if nothing is paid until completion |
| Waiver | Possible under the targeted small business program (§ 12.44) |
Source: Iowa Code chapter 573 (§§ 573.2, 573.5).
Claims and retainage
- Claims may be filed within 30 days after completion and final acceptance, and later if the full price is still unpaid and no action is pending (§ 573.10).
- The public owner may retain up to 3% of each monthly payment (§ 573.12).
- Retained funds are held 30 days after final acceptance; if claims are on file, double their total is kept (§ 573.14).
Source: Iowa Code chapter 573.
Who the bond protects
The bond protects the public owner and those who furnish labor and materials for the improvement. See our performance bond and payment bond guides.
How much Iowa contract bonds cost
Contract bonds are priced as a percentage of the bond amount, commonly about 0.5% to 3% based on the contractor’s finances and experience (NASBP).
Iowa public works bond FAQs
When is a bond required on Iowa public improvements?
On contracts of $25,000 or more.
How much is the Iowa public improvement bond?
At least 75% of the contract price.
How long do I have to file a claim in Iowa?
Generally within 30 days after completion and final acceptance.
Related guides
- Iowa surety bonds
- Performance bonds
- Payment bonds
- Illinois public construction bond
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your Iowa public project, and a licensed agent will help you set up bonding.
