Common use of Payment and Performance Bond Clause in Contracts

Payment and Performance Bond. Contractor shall provide Owner with a Payment and a Performance Bond in the amount of the Contract Price within ten (10) days of the Notice of Award of Contract. Failure to provide the bond(s) shall result in this Agreement becoming null and void. No action on the part of the Owner shall be deemed to waive this requirement except a written amendment to this Agreement. Said bonds shall be in substantially the same form as in Section 255.05, Florida Statutes. Additionally, bonds must meet the following specifications: • The surety company shall have a currently valid Certificate of Authority issued by the State of Florida, Department of Insurance, authorizing it to write surety bonds in the State of Florida and be doing business in the State of Florida • The surety company shall have a currently valid Certificate of Authority issued by the United States Department of the Treasury under Sections 9304 and 9308, Title 31, of the United States Code. • The surety company shall be in full compliance with the provisions of the Florida Insurance Code • The surety company shall have at least twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued; and • The surety company shall have at least a Policy Holding's Rating of "A-” and Financial Rating of VI in the latest issue of ‟Best's Key Rating Guide”. Alternative forms of security as described in Section 255.05, Florida Statues, are acceptable where approved by the Owner in writing.

Payment and Performance Bond. Contractor shall provide Owner with a Payment and a Performance Bond in the amount of the Contract Price within ten (10) days of the Notice of Award of Contract. Failure to provide the bond(s) shall result in this Agreement becoming null and void. No action on the part of the Owner shall be deemed to waive this requirement except a written amendment to this Agreement. Said bonds shall be in substantially the same form as in Section 255.05, Florida Statutes. Additionally, bonds must meet the following specifications: •  The surety company shall have a currently valid Certificate of Authority issued by the State of Florida, Department of Insurance, authorizing it to write surety bonds in the State of Florida and be doing business in the State of Florida •  The surety company shall have a currently valid Certificate of Authority issued by the United States Department of the Treasury under Sections 9304 and 9308, Title 31, of the United States Code. •  The surety company shall be in full compliance with the provisions of the Florida Insurance Code •  The surety company shall have at least twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued; and •  The surety company shall have at least a Policy Holding's Rating of "A-” and Financial Rating of VI in the latest issue of ‟Best's Key Rating Guide”. Alternative forms of security as described in Section 255.05, Florida Statues, are acceptable where approved by the Owner in writing.