The short version
- City, county, school board and local authority projects: Georgia's local public works law, including its bid bond, performance bond and payment bond rules, now applies to projects of $250,000 and up.
- State agency projects: the bond sections in Title 13 were not changed. Performance and payment bonds are still required on state contracts over $100,000.
- Federal projects: unchanged. The Miller Act requires performance and payment bonds on contracts over $150,000.
- Any owner can still ask for bonds on smaller jobs. The threshold is the legal minimum, not a ceiling.
What House Bill 137 actually did
HB 137 is mostly about bidding thresholds. It raised several dollar amounts across Georgia law to $250,000. The change that matters most for contractors is in Section 6, which amended O.C.G.A. § 36-91-22. That section says the local public works chapter does not apply to projects that can be performed for less than a set amount. The bill moved that amount from $100,000 to $250,000.
The local bond requirements live inside that same chapter. Performance bonds are in § 36-91-70, payment bonds are in § 36-91-90 and bid bonds are in § 36-91-50. So when the chapter stops applying below $250,000, those statutory bond requirements stop applying below $250,000 too.
The bill also raised related thresholds for school construction bidding, county and city road contracts, retainage rules on state contracts, and state purchasing through the Department of Administrative Services.
What did not change
The state-level bond sections, O.C.G.A. §§ 13-10-40 and 13-10-60, were not amended. State agency construction contracts over $100,000 still require a performance bond and a payment bond, each for at least the full contract amount. Bid security is still required on state bids over $100,000 under § 13-10-20.
Bond amounts did not change either. On covered public work, performance and payment bonds are each at least 100% of the contract, and they must increase as the contract amount increases through change orders. Local bid bonds remain at least 5% of the bid.
| Owner | Bonds required when | Source |
|---|---|---|
| State agencies | Over $100,000Unchanged by HB 137. | O.C.G.A. §§ 13-10-20, 13-10-40, 13-10-60 |
| Cities, counties, boards of education, local authorities | $250,000 and upWas $100,000 before July 1, 2025. | O.C.G.A. §§ 36-91-22, 36-91-50, 36-91-70, 36-91-90 |
| Federal | Over $150,000Miller Act. | 40 U.S.C. § 3131; FAR 28.102 |
What this means if you bid public work
Read the bond section of every bid package. Many cities and counties write bond requirements into their own procurement rules and bid documents. A county can still require performance and payment bonds on a $150,000 paving job. The statute sets the minimum. The bid documents tell you what this owner wants.
Smaller local jobs may open up. Jobs under $250,000 that used to require statutory bonds may not anymore. That can help newer contractors who are still building a bonding program. It can also mean more competition on those jobs.
Subcontractors should pay attention too. On a public job without a payment bond, a sub's protection is weaker, because you generally cannot put a lien on public property. If you are a sub on a local job under $250,000, ask the general contractor whether there is a payment bond before you start.
Common questions
Did HB 137 change the state threshold to $250,000?
Not for bonds. The bill changed several state thresholds, including retainage and state purchasing, but the bond sections in Title 13 still say over $100,000.
Can a city still require bonds under $250,000?
Yes. Owners can require bonds on any job through their bid documents and contracts.
When did this take effect?
July 1, 2025.
Bidding a Georgia public job? See bid bonds and performance and payment bonds, or start a chat below and we will read the bond section of your bid package with you.
Sources: Georgia House Bill 137 (2025), as passed; O.C.G.A. §§ 13-10-20, 13-10-40, 13-10-60, 36-91-22, 36-91-50, 36-91-70, 36-91-90; Miller Act, 40 U.S.C. § 3131; FAR 28.102. This article is general information, not legal advice.