South Dakota

What is the payment bond threshold for South Dakota?

For South Dakota, payment bond threshold is The state may waive the bond requirement on contracts of less than $50,000 for any public improvement; bond amount is may be issued for the total cost of the improvements; claim deadline is A party may not sue for payment until six months after complete performance of the obligations of the contract for improvement; preliminary notice required is Notice of a suit must be given to all known creditors informing each of their right to intervene; statutory citation is South Dakota Codified Laws, Title 5, Chapter 18A, §5-18A-14. Title 5, Chapter 21, §§5-21-1 to 5-21-8. Title 9, Chapter 44, §9-44-3, verified against its source on 2026-10-01.

SOUTH DAKOTA Amount of Bond: Municipal improvement bonds may be issued for the total cost of the improvements. (S.D. Codified Laws §9-44-3). Labor and Material Covered: Labor and material used in the prosecution of the work provided for in the public contract. (S.D. Codified Laws §5-21-1). Notice Required: Notice of a suit must be given to all known creditors informing each of their right to intervene. Notice must also occur by publication in a generally circulated publication for the county where the work is performed once a week for two successive weeks. The first publication must be made at least three months before the time for suit commences. (S.D. Codified Laws §5-21-8). Time for Suit: A party may not sue for payment until six months after complete performance of the obligations of the contract for improvement. (S.D. Codified Laws §5-21-6). Contracts Excluded: The state may waive the bond requirement on contracts of less than $50,000 for any public improvement and $25,000 for any contract for the purchase of supplies or services, other than professional services. (S.D. Codified Laws §§5-18a-14, 5-21-1.1). Penalty for Failure to Take Bond: No penalty is codified. Statutory Citation: South Dakota Codified Laws, Title 5, Chapter 18A, §5-18A-14. Title 5, Chapter 21, §§5-21-1 to 5-21-8. Title 9, Chapter 44, §9-44-3.

— fullertonlaw.com, retrieved 2026-08-17