§61-1.

§61-1.
   
   A. Prior to the award of any contract exceeding the amount of Thirteen
   Thousand Five Hundred Dollars ($13,500.00) for the purpose of making
   any public improvements or constructing or repairing any public
   building, the person to whom said contract is awarded shall:
   
   1. Furnish a bond with good and sufficient sureties payable to the
   state in a sum not less than the total sum of the contract; or
   
   2. Cause an irrevocable letter of credit containing such terms as may
   be prescribed by the Department of Central Services to be issued for
   the benefit of the state by a financial institution insured by the
   Federal Deposit Insurance Corporation in a sum not less than the total
   sum of the contract.
   
   B. The bond or irrevocable letter of credit shall ensure the proper
   and prompt completion of the work in accordance with the contract and
   shall ensure that the contractor shall pay all indebtedness incurred
   by said contractor, his subcontractors, and all materialmen for such
   labor, material, rental of machinery or equipment, and repair of and
   parts for equipment as are used or consumed in the performance of said
   contract. Provided, notice in writing by certified mail must be given
   to the general contractor where rental of equipment is to be furnished
   to his subcontractor. The notice shall include the beginning date, the
   location where the equipment is to be used, the description of the
   equipment and the terms of the rental and be mailed so as to be
   received by the general contractor within ten (10) days of the
   effective date of said rental.
   
   C. For any contract not exceeding the amount of Thirteen Thousand Five
   Hundred Dollars ($13,500.00), in lieu of a bond or irrevocable letter
   of credit, the contractor shall submit an affidavit of the payment of
   all indebtedness incurred by the contractor, subcontractors, and all
   materialmen for labor, material, rental of machinery or equipment, and
   repair of and parts for equipment as are used or consumed in the
   performance of the contract. The execution of the affidavit with
   knowledge that any of the contents of the affidavit are false, upon
   conviction, shall constitute perjury, punishable as provided for by
   law.