Common use of MATERIAL PAYMENT AND PERFORMANCE BONDS Clause in Contracts

MATERIAL PAYMENT AND PERFORMANCE BONDS. In accordance with Civil Code Section 9550, if the Contract Price is in excess of Twenty-Five Thousand Dollars ($25,000.00), then prior to commencement of the work, Contractor shall obtain and deliver to District (a) a labor and material payment bond to ensure satisfaction of any claims of material suppliers and of laborers employed in connection with the work, and (b) a performance bond to ensure faithful and timely performance by Contractor of its obligations under this Contract. The bonds must (c) be in a form and content acceptable to District, (d) name District as the entity to which Contractor and its surety are bound, (e) be issued by an admitted surety insurer under California law, (f) not have a stated expiration date, (g) remain in effect at all times that Contractor has any obligations under this Contract, (h) be in a penal sum equal to one hundred percent (100%) of the Contract Price, provided, however, that if the Contract Price is increased in accordance with this Contract, then, within five (5) calendar days after such increase, Contractor shall increase the amount of the applicable bond to equal the total increased Contract Price; and