Common use of Bonds for Delinquent Contractors Clause in Contracts

Bonds for Delinquent Contractors. If a contractor owes sums for a past violation occurring before the beginning date of this agreement or if a contractor is hereafter found to be in violation of this agreement resulting from a failure of that contractor to pay wages or sums due to the trust funds, the Joint Conference Board may require that contractor to post bonds as provided below. The amount due as an indemnity payment on a required bond from the surety under this Section 5 shall be determined by the Joint Conference Board as follows. The Joint Conference Board may impose a bond providing for indemnity for violations in an amount as determined by the Joint Conference Board which indemnity amount will not exceed twice the amount of money that the contractor is found to be in violation of this agreement due to that contractor’s failure to pay sums required for wages and/or to the trust funds, or for more as allowed in Section 6 below. A bond can be required for up to three years in duration from the date the bond is first posted, or for a longer period as provided in Section 6 below. In the event of multiple violations by the contractor, the contractor may satisfy the bonding requirements as to all violations by posting one or more bonds which, taken together, are in a sufficient amount and of a sufficient duration to satisfy the total bonding requirements established by the Joint Conference Board for the contractor. The Joint Conference Board may adjust the amount of the bond(s) required, from time to time, as to each contractor that is required to post a bond based on that contractor’s payment, or failure to pay, further contributions to the trust funds as such become due.