Iowa

For Iowa, payment bond threshold is Public improvement contracts under $25,000; bond amount is Not less than 75 percent of the contract price; claim deadline is Any time after the expiration of 30 days, and not later than 60 days, following the completion and final acceptance of the public improvement; preliminary notice required is Such notice must be received by the principal contractor within thirty days of first performing or furnishing; statutory citation is Iowa Code, Title XIV, Subtitle 3, Chapter 573, verified against its source on 2026-08-17.

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What the source says

IOWA Amount of Bond: Not less than 75 percent of the contract price, excepting that, in contracts where no part of the contract price is paid until after the completion of the public improvement, the amount of the bond may be fixed at not less than 25 percent of the contract price. Labor and Material Covered: Labor performed or material, services, or transportation furnished in the construction of a public improvement under a contract with the principal contractor or with subcontractors, except those furnishing materials to a subcontractor. Notice Required: To principal contractor. A person, firm, or corporation that has performed labor for or furnished materials, service, or transportation to a subcontractor shall not be entitled to a claim against the retainage or bond. However, an exception exists where the principal contractor is notified in writing with a one-time notice containing the name, mailing address and telephone number of the performing or furnishing party and the name of the subcontractor. Such notice must be received by the principal contractor within thirty days of first performing or furnishing. This notice covers additional labor performed or materials, service, or transportation furnished by the same party to the same subcontractor for use in the same construction project. The claim must be also supported with a certified statement that the principal contractor received the notice. Note that this exception does not apply to highway, bridge, or culvert projects. Counsel should also note: The construction bidding procedures are now incorporated into Chapter 26 in the Code of Iowa which allows for various devices based upon the amount of the project. Time of Filing Claims: Claims must be filed no later than 30 days after the completion and final acceptance of the improvement, or at any time if no action is pending and the full contract price has not been paid. Public Improvements and Highway, Bridge, or Culvert Projects: Payments made by a governmental entity or the department for the construction of public improvements and highway, bridge, or culvert projects are discussed in Section 573.28. A contractor may request the release of all or part of the retained funds owed at any time after all or any part of the work is substantially completed. The request must be accompanied by a sworn statement from the contractor that, 10 calendar days prior to filing the request, notice was given to all known relevant parties. Once the funds are released by the governmental agency or the department, the contractor must in turn release owed funds to other relevant parties. In case of highway improvements by the county, claims shall be filed with the county auditor of the county letting the contract. In case of contracts for improvements on the farm-to-market highway system paid from farm-to-market funds, claims shall be filed with the auditor of the state department of transportation. Interest: Interest is available on unpaid funds; however, the rate of interest is determined by the period of time during which interest accrues, and shall be the same as the rate of interest that is in effect under Section 12C.6, as of the day interest begins to accrue. Time for Suit: Any time after the expiration of 30 days, and not later than 60 days, following the completion and final acceptance of the public improvement. Contracts Excluded: Public improvement contracts under $25,000. Penalty for Failure to Take Bond: Bond mandatory. Statutory Citation: Iowa Code, Title XIV, Subtitle 3, Chapter 573.

— fullertonlaw.com, retrieved 2026-08-17

Source

• fullertonlaw.comhttps://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified against source: 2026-08-17. Due for re-check by 2027-08-17. This page as Markdown · OKF bundle · full dataset as JSON.