Utah DFCM’s proposed R23-1-1103 sets factors for discretionary performance and payment bonds after HB 508. Public comments until Nov. 2, 2026; anticipated effective ~Nov. 9. Not legal advice.
Last verified: September 30, 2026 (PT)
Utah’s Division of Facilities Construction and Management (DFCM) has circulated proposed rules implementing H.B. 508’s shift to discretionary performance and payment bonding on DFCM construction contracts. The comment window is short — and material for anyone bidding or bonding Utah public facilities work.
Verify at source / not legal advice. Confirm the live Utah Office of Administrative Rules filing, comment instructions, and final effective date. Industry education only — not legal, underwriting, or placement advice. Do not treat proposed text as final.
Per the proposed-rule analysis, H.B. 508S03 (2026 General Session), reflected at Utah Code § 63G-6a-1103, removed the requirement that DFCM always obtain performance and payment bonds. DFCM may require a performance bond, a payment bond, or both when it determines a bond is necessary to protect DFCM from financial loss or performance risk.
NASBP’s Focal Point — September 17, 2026 summarized the same point: HB 508 gave DFCM discretion to waive those bonds, with proposed rules expected for public comment and NASBP attention on R23-1-1103 “may be required” language.
This post does not invent which project types are always bonded or always unbonded beyond the statute and proposed rule.
Proposed R23-1-1103 lists factors DFCM may weigh when deciding whether a bond is necessary to protect against financial loss or performance risk, including:
The proposed rule states the director must make the bonding decision in writing prior to the solicitation.
Pending: How often DFCM will require bonds after the rule is final, and whether formal Utah State Bulletin publication details differ from the circulated PDF (filing ID was still marked for office use when reviewed).
Where a performance bond, payment bond, or both are required, the proposed form is the most current AIA A312 (or equivalent). The surety must be authorized in Utah and listed on U.S. Treasury Circular 570 for an amount not less than the bond. A contractor cannot be forced to buy from a specific surety company, producer, agent, or broker.
Related bid-security text in the same package still references AIA A310 where bid security is required — separate from the discretionary performance/payment call in R23-1-1103.
From the proposed-rule notice:
NASBP said it was reviewing an advance copy and preparing comments focused on R23-1-1103.
Proposed R23-1-1103 turns HB 508’s statutory discretion into a written factor list. Bonding is not automatic on every DFCM construction contract under this framework; when DFCM does require bonds, AIA A312 and Circular 570 standards apply as drafted. Immediate action: the November 2, 2026 comment deadline — then verify the final rule before changing desk playbooks.
Verify at source / not legal advice. Summarized from dated public pages and the circulated proposed-rule PDF as of September 30, 2026 (PT). Proposed rules can change; confirm the final Utah filing before relying on any factor list or date. Global Guarantors education content — not a solicitation and not a quote.