State Survey of P3 Authorizing Statutes: North Carolina

N.C. Gen. Stat. § 115D‐20(13)

Summary

The law authorizes community colleges to use P3s for new facilities.

No surety bond language.

N.C. Gen. Stat. §§ 136‐89.180 to 198

Summary

The law authorizes the Turnpike Authority to enter into agreements with the DOT, political subdivisions, and private entities, and to expend its funds as it deems necessary pursuant to agreements, to finance the acquisition, construction, equipping, operation or maintenance of any turnpike project. The law permits the authority to study, plan, and conduct preliminary design work on up to nine projects and then to design, establish, purchase, construct, operate and maintain five identified projects only.

No surety bond language.

Session Law 2013‐37

Summary

The law authorizes Onslow County to enter into P3s for a capital project for buildings or other improvements, including, but not limited to, paving, grading, utilities, infrastructure, reconstruction, or repair, which would include both public and private facilities.

The law requires a payment bond from a surety company authorized to do business in the State. The bond must be in the amount of 125% of the total anticipated amount of the construction contracts to be entered into under the development contract. The payment bond is conditioned on the prompt payment for all labor or materials for which the private developer or its contractors or their subcontractors are liable, and the bond is for the sole protection of persons furnishing such labor or materials. The law outlines the procedures for filing payment bond claims.

Excerpt:

“The County shall require a private‐developer to provide a payment bond for construction work in accordance with the provisions of Section 1(f) of this act.”

Session Law 2013‐401

Summary

The law authorizes the state to enter into P3 agreements for non‐transportation public work.

The law requires that development contracts under the law include a payment bond provision in an amount of 100 percent of the construction portion of the contract.

Excerpt:

“The following bonding provisions apply to any development contract entered into under this section:

(1) A payment bond shall be required for any development contract as follows:

A payment bond in the amount of one hundred percent (100%) of the total anticipated amount of the construction contracts to be entered into between the private developer and the contractors to design or construct the improvements required by the development contract.”

N.C. Gen. Stat. § 136-18

Summary

The law authorizes the NC DOT to establish P3s for constructing, equipping, maintaining, and operating communications infrastructure. Communications transportation infrastructure means fiber optic trunk lines, microcell towers, or other broadband or data transmission facilities located within the right of way of the interstate or primary highway system that is owned, and utilized completely or partly, by the DOT for traffic management, highway safety, vehicle technology integration, and other functions of the Department. A private entity or its contractors must provide performance and payment security in the form of performance and payment bonds on the design and construction portion of the agreement as required under NC’s LMA.

Both performance and payment bonds are required in accordance with G.S. 44A-26.