Construction Performance Bond. Before starting any construction or installation, Licensee shall furnish a performance bond in an amount calculated by multiplying the kW (AC) capacity of the System as described in this Agreement by $250/kW, which provides an estimate of the amount necessary to restore the Site and Licensed Area to its pre-installation condition in the event Licensee fails to complete the installation of the System in accordance with this Agreement. Trustees shall release to Licensee any such construction performance bond no later than first day of the second Contract Year. 8.9.1. Licensee Payment and Performance Bonds for initial physical construction: In addition to the Bond in Section 8.9, the Licensee shall furnish, for each counterpart signed, two surety bonds in the form prescribed by Trustees. Each bond shall be in an amount equal to 100 percent of the mutually agreed upon construction costs and executed by an admitted surety insurer licensed in the State of California and listed in the latest published United States Treasury Department list of “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies.” Reference the following websites: State of California Department of Insurance at: xxxxx://xxxxxxxxxxx.xxx.xxxxxxxxx.xx.xxx/companyprofile/companyprofil e and the US Treasury listing at: xxxxx://xxx.xxxxxx.xxxxxxxx.xxx/fsreports/ref/suretyBnd/c570.htm One of the surety bonds shall guarantee faithful performance of the installation work by the Licensee and the other shall secure payment of laborers, mechanics, or material men employed in connection with the installation work. Such bonds are subject to the approval of Trustees. The surety bonds required by this Subsection 8.9.1 shall remain in full force and effect during the term of the construction and for a period of one year after the Commercial Operation Date. Trustees shall release to Licensee all such bonds no later than the first day of the second Contract Year. If change order(s) exceed 110% of the mutually agreed upon construction costs, Trustees may demand in writing that the Licensee provide such further bonds or additional surety to the extent of such additional construction costs, not exceeding that originally required, as in Trustees’ opinion is necessary, considering the extent of the Installation Work remaining to be done.
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Samples: Master Enabling Agreement, Master Enabling Agreement, Master Enabling Agreement
