Common use of Payment Bonds Clause in Contracts

Payment Bonds. 1. The penal amount of the payment bonds shall equal: (i) 50 percent of the Agreement price if the Agreement price is not more than $1 Million; (ii) 40 percent of the Agreement price if the Agreement price is more than $1 Million but not more than $5 Million; or (iii) $2.5 Million if the Agreement price is more than $5 Million. 2. If the original Agreement price is $5 Million or less, the TJPA may require additional protection, as required by subparagraph 1, if the Agreement price is increased.

Payment Bonds. 1. The penal amount of the payment bonds shall equal: (i) 50 Fifty percent of the Agreement Contract price if the Agreement Contract price is not more than $1 Million;million. (ii) 40 Forty percent of the Agreement Contract price if the Agreement Contract price is more than $1 Million million but not more than $5 Millionmillion; or (iii) $2.5 Million Two and one half million if the Agreement Contract price is more than $5 Millionmillion. 2. If the original Agreement contract price is $5 Million million or less, the TJPA Airports Authority may require additional protection, protection as required by subparagraph 1, 1 if the Agreement contract price is increased.