Common use of BID, PERFORMANCE AND PAYMENT SECURITY Clause in Contracts

BID, PERFORMANCE AND PAYMENT SECURITY. 27.1. Bid security, performance security and/or payment security may be required as part of the Contract as specified in Schedule A herein. 27.2. If a Bid does not comply with the bid security requirements, it shall be rejected as non- responsive. 27.3. Bid security will be returned to Bidders as follows: 27.3.1. Within a reasonable time after the Bid Opening, the Comptroller will be notified to return the bid securities of all but the three (3) lowest Bidders. Within a reasonable time after the award, the Comptroller will be notified to return the bid securities of the remaining two (2) unsuccessful Bidders; 27.3.2. Within a reasonable time after the execution of the Contract and acceptance of the Contractor’s bonds, the Comptroller will be notified to return the bid security of the successful Bidder or, if no Performance and Payment bonds are required, the Comptroller will be notified to return the bid security only after the sum retained under applicable provisions of the contract equals the bid security; 27.3.3. Where all bids are rejected, the Comptroller will be notified to return the bid security of all Bidders at the time of rejection; 27.4. The performance and payment security, if required in the Contract Documents and in the amounts specified in Schedule A, shall be delivered by the Contractor to the City within ten

BID, PERFORMANCE AND PAYMENT SECURITY. 27.1. Bid security, performance security and/or payment security may be required as part of the Contract as specified in Schedule A herein. 27.2. If a Bid does not comply with the bid security requirements, it shall be rejected as non- responsive. 27.3. Bid security will be returned to Bidders as follows: 27.3.1. Within a reasonable time after the Bid Opening, the Comptroller will be notified to return the bid securities of all but the three (3) lowest Bidders. Within a reasonable time after the award, the Comptroller will be notified to return the bid securities of the remaining two (2) unsuccessful Bidders; 27.3.2. Within a reasonable time after the execution of the Contract and acceptance of the Contractor’s bonds, the Comptroller will be notified to return the bid security of the successful Bidder or, if no Performance and Payment bonds are required, the Comptroller will be notified to return the bid security only after the sum retained under applicable provisions of the contract equals the bid security; 27.3.3. Where all bids are rejected, the Comptroller will be notified to return the bid security of all Bidders at the time of rejection;. 27.4. The performance and payment security, if required in the Contract Documents and in the amounts specified in Schedule A, shall be delivered by the Contractor to the City within tenten (10) Days after the receipt of a Notice of Award. If a Contractor fails to deliver the required performance and payment security, then the award shall be rescinded, its bid security shall be enforced and the award of the Contract may be made to the next lowest responsive and responsible Bidder or the Contract may be rebid. 27.5. Acceptable security for bids, performance and payment shall be limited to: 27.5.1. A one-time bond in a form satisfactory to the City; 27.5.2. A bank-certified check or money order; or 27.5.3. City bonds; or 27.5.4. Other financial instruments as determined by the City’s Office of Construction in consultation with the Comptroller. 27.6. Security provided in the form of bonds must be prepared on the form of bonds authorized by the City. Forms for bid, performance and payment bonds are included in the Contract Documents as Attachments. Such bonds must have as surety thereunder, such surety company or companies as are approved by the City and authorized to do business in the State of New York. 27.7. Attorneys-in-fact who sign bid, performance or payment bonds must file with each bond a certified copy of their power of attorney to sign said bond.