§ 10-3-21 - Sureties – Bound to arbitration award on construction contract.
SECTION 10-3-21
§ 10-3-21 Sureties – Bound toarbitration award on construction contract. – (a) If a contractor principal on a bond furnished to guarantee performance orpayment on a construction contract and the claimant are parties to a writtencontract with a provision to submit to arbitration any controversy thereafterarising under the contract, the arbitration provisions shall apply to thesurety for all disputes involving questions of the claimant's right of recoveryagainst the surety. Either the claimant, the contractor principal, or suretymay demand arbitration in accordance with the written contract in onearbitration proceeding. The arbitration award shall decide all controversiessubject to arbitration between the claimant, on the one hand, and thecontractor principal and surety on the other hand, including all questionsinvolving liability of the contractor principal and surety on the constructionbond, but a claimant must file suit for recovery against the surety within thetime limits set forth by law or by the terms of the bond when there are noapplicable statutory provisions. The arbitration shall be in accordance with§ 10-3-1 et seq. and the court shall enter judgment on the arbitration asprovided in the agreement.
(b) The arbitrator or arbitrators, if more than one, shallmake findings of fact as to the compliance with the requirements for recoveryagainst the surety, and those findings of fact shall be a part of the awardbinding on all parties to the arbitration.