P.R. Laws tit. 23, § 1020c
The Department of Consumer Affairs is hereby authorized to require an annual bond, based on the volume of business of the contractor during the previous calendar year. The required bond shall not exceed the percentage established in the following table:
% Required
$ 50,000 or less 10 %
$ 50,001—99,999 8 %
$ 100,000—499,999 6 %
$ 500,000 or more 4 %
The Department shall require every contractor to certify its volume of business in his application for registration or the annual renewal thereof. Every new contractor who does not have a previous business record, shall be required to post a minimum bond of four thousand dollars ($4,000) corresponding to a volume of business of fifty thousand and one dollars ($50,001).
Every natural or juridical person who has a constructor or developer’s license under Act June 13, 1972, No. 130, shall not have to post the bond or any other fees required by §§ 1020a—1020f of this title.
Every natural or juridical person engaged in the construction business who does not hold a license under Act June 13, 1972, No. 130, and whose operations are bonded, shall not have to post the bond required by §§ 1020a—1020f of this title. Nevertheless, he shall have to present attesting evidence to such effects.
Any other person engaged in the construction business shall be bound to pay the fees and bond required by §§ 1020a—1020f of this title.
Every natural or juridical person who performs housing construction work, without any bond on such works, shall be imposed an administrative fine in a minimum amount of five thousand dollars ($5,000) up to a maximum of ten thousand dollars ($10,000). The fine shall be imposed on the individual or on the members of the Board of Directors, should it be a juridical person, or on the partners, in case of a legal partnership.
The Department of Consumer Affairs may review through regulations the percentage of the bond, taking into consideration the rise construction costs.
The Civil Code of Puerto Rico shall be the substantive law that is applicable in these cases. The prescriptive term to file a complaint or suit under §§ 1020a—1020f of this title shall be six (6) months in the case of defects in personal property, and two (2) years in the case of real estate, counting from the date the works were completed.
History —Aug. 10, 1995, No. 146, § 3; July 18, 1998, No. 137, § 1.