Section 7-757 - Actions by sub-contractors, etc., on performance bonds(a) In all cases where a surety bond shall be given to any school district to secure performance by a contractor of any public contract for the construction, reconstruction, alteration, or repair of any building, or other structure, or for the completion of any project, or performance of any other work whatsoever, or the supplying of any materials, and such bond shall include a condition for the payment of material furnished and labor supplied or performed in connection with such public work or improvement, or similar provisions, irrespective of whether such bond or any provision therein shall have been required by statute or any other authority, and where no separate or additional bond conditioned for the payment of material furnished and labor supplied or performed in connection with such public contract has been taken, then, and in such event every person, co-partnership, association, or corporation, who whether as sub-contractor or otherwise, has furnished material or supplied or performed labor in connection with such public work or improvement and who has not been paid therefor, shall have the right to intervene and be made a party to any action instituted on such bond by the school district named as obligee therein, and have his, their, or its rights and claims adjudicated in such action and judgment rendered thereon for any amount due him, them, or it, for such labor or materials; subject, however, to the priority of the claim and judgment of the school district obligee, if any.(b) If the amount of the liability of the surety on said bond is insufficient to pay the full amount of said claims and demands, then, after paying the full amount due the school district obligee, the remainder shall be distributed pro rata among said interveners.(c) If no suit is brought by the school district obligee within six months from the completion of said contract and final settlement therefor, then the person or persons who have supplied the contractor with labor and materials shall, upon application therefor, and furnishing affidavit to the school district that labor and materials for the prosecution of such work have been supplied by him, them, or it, and that payment for the same has not been made, be furnished with a certified copy of said contract and bond upon which he, they, or it shall have a right of action, and shall be authorized to bring suit in the name of the school district obligee for his, their, or its use and benefit, against said contractor and his sureties, and to prosecute the same to final judgment and execution. Where suit is instituted by any of such creditors on the bond of the contractor, it shall not be commenced until after the complete performance of said contract and final settlement thereof with the school district, and shall be commenced within one year after the performance and final settlement of the contract, and not later.(d) Where suit is so instituted by a creditor or creditors, no other action shall be brought by any other creditor, but any other creditor may file his claim in the action first brought and be made party thereto within one year from the completion of the work under said contract, but not later. If two or more actions are brought on the same day, the action in which the largest claim is demanded shall be regarded as the first action. Any creditor who has brought an action within one year but after suit brought by another creditor or on the same day, may intervene in the suit first brought within the year, notwithstanding the fact that the intervention in such case is after the expiration of the year, provided such intervention is made within thirty days after the expiration of the year. If the recovery on the bond is inadequate to pay the amounts found due to all creditors, judgment shall be given to each creditor pro rata, of the amount of the recovery.(e) The surety on said bond may pay into court for distribution among said claimants and creditors the full amount of the surety's liability, to wit, the penalty named in the bond, less any amount which said surety may have had to pay to the school district obligee by reason of the execution of said bond. Upon so doing, the surety shall be relieved from further liability.(f) In all suits instituted under the provisions of this act, such personal notice of the pendency of such suits, informing them of their right to intervene, as the court may order, shall be given to all known creditors, and in addition thereto, notice shall be given by publication in a newspaper of general circulation published in the county or town where the contract was performed, once a week for at least three successive weeks. When such suit has been begun within three weeks of the end of the year within which suit may be brought, said notice by publication shall be only for the period intervening between the time of instituting such suit and the end of the year.(g) Where the principal contractor shall, for any reason, have failed to complete performance of his contract, and completion of the project is undertaken by the school district or the surety, either by themselves or by letting of new contracts, the six-month period before which suit may be brought and the one year period within which such action must be commenced by sub-contractors, material-men and laborers, as above provided, shall date from the completion and acceptance of the project covered by the original contract and bond. For the purposes of such suits, the date of such completion shall be fixed by the officers of the school district. Written notice of the date of such completion shall be given to all persons who shall theretofore request such notice.1949, March 10, P.L. 30, art. VII, § 757.