School districts seem to be perpetually involved in construction projects. A recent lawsuit filed against a district by a construction firm for breach of contract. The allegation was that the district did not require, within its bid documents, a payment and performance bond to be supplied by the awarded contractors. Under the allegation, one of the subcontractors brought suit against the district as they were not paid by the general contractor. The suit alleged that the district failed to require a bond as is required by state statute and as such were in violation of the statute and a breach of contract allegation was brought for $225,000. The moral of this story is, District officials should inquire with their current insurance carrier agent whether such coverage is afforded by their current policy and discuss situations similar to this.