Common use of Bonds, Indemnity, Insurance and Responsibility Clause in Contracts

Bonds, Indemnity, Insurance and Responsibility. 16.1 Payment and Performance Bonds. Except for contracts with an overall value of $25,000 or less, the Contractor shall furnish, at time of signing the Contract, a surety bond to protect the laborers and material men in accordance with Section 9554 of the Civil Code and a performance bond guaranteering the faithful performance of this Contract, each in the amount of $500,000, which is the value of this Contract. Contractor shall not be entitled to, nor shall County authorize, subordinate contracts when the total outstanding value of subordinate contracts under this contract exceeds the bond values for which the County is an obligee. Said bonds to be approved by the office of the County Counsel and the County Executive Office of Orange County. Such bonds shall be on forms provided in accordance with the RCA and issued and executed by an admitted surety insurer (authorized to transact surety insurance in California). (e.g.; if the bonds are issued through a surplus line broker, both the surplus line broker and the insurer with whom he is doing business for purposes of this project must be licensed in California to issue such bonds.) The faithful performance bond shall be issued by a Surety company with a minimum insurance rating of A- (Secure Best’s Rating) and VII (Financial Size Category) as determined by the most current edition of the Best’s Key Rating Guide/Property- Casualty/United States or xxxxxx.xxx. The Surety Company must also be authorized to write in California by the Department of the Treasury, and must be listed on the most current edition of the Department of Treasury’s Listing of Approved Securities. If any surety upon any bond furnished in connection with this Contract becomes unacceptable to the County, or if any such surety fails to furnish reports as to his financial conditions from time to time as requested by County, the Contractor shall promptly furnish such additional security as may be required by County from time to time to protect the interests of the County and of persons supplying labor or materials in the prosecution of the work contemplated by this Contract. If the County increases the total Contract amount, the Contractor is to provide a new bond for the new total Contract amount in a bond for the difference. The payment and performance bonds must each be issued by a surety that: (i) is authorized by the California Insurance Commissioner to transact surety insurance in the State of California;

Bonds, Indemnity, Insurance and Responsibility. 16.1 Payment and Performance Bonds. Except for contracts with an overall value of $25,000 or less, the Contractor shall furnish, at time of signing the Contract, a surety bond to protect the laborers and material men in accordance with Section 9554 of the Civil Code and a performance bond guaranteering the faithful performance of this Contract, each in the amount of $500,000, which is the value of this Contract. Contractor shall not be entitled to, nor shall County authorize, subordinate contracts when the total outstanding value of subordinate contracts under this contract exceeds the bond values for which the County is an obligee. Said bonds to be approved by the office of the County Counsel and the County Executive Office of Orange County. Such bonds shall be on forms provided in accordance with the RCA and issued and executed by an admitted surety insurer (authorized to transact surety insurance in California). (e.g.; if the bonds are issued through a surplus line broker, both the surplus line broker and the insurer with whom he is doing business for purposes of this project must be licensed in California to issue such bonds.) The faithful performance bond shall be issued by a Surety company with a minimum insurance rating of A- (Secure Best’s Rating) and VII (Financial Size Category) as determined by the most current edition of the Best’s Key Rating Guide/Property- Casualty/United States or xxxxxx.xxx. The Surety Company must also be authorized to write in California by the Department of the Treasury, and must be listed on the most m ost current edition of the Department of Treasury’s Listing of Approved Securities. If any surety upon any bond furnished in connection with this Contract becomes unacceptable to the County, or if any such surety fails to furnish reports as to his financial conditions from time to time as requested by County, the Contractor shall promptly furnish such additional security as may be required by County from time to time to protect the interests of the County and of persons supplying labor or materials in the prosecution of the work contemplated by this Contract. If the County increases the total Contract amount, the Contractor is to provide a new bond for the new total Contract amount in a bond for the difference. The payment and performance bonds must each be issued by a surety that: (i) is authorized by the California Insurance Commissioner to transact surety insurance in County of Orange, Sheriff-Coroner MA-060-18011031 Xxx Xxxxxxx dba Xxxxxxx Construction Company the State of California;; (ii) has assets exceeding its liabilities in an amount equal to or in excess of the amount of the bonds; and (iii) acts in compliance with Insurance Code Section 12090. The payment and performance bonds shall be in the form provided with the RCA and are subject to approval by the County.