PERFORMANCE AND PAYMENT BOND REQUIREMENTS. (a) If the Agreement price exceeds $30,000 but does not exceed $150,000, the contractor shall provide either a payment bond or an alternative payment protection method acceptable to and approved by BSA’s PPM Division. If the contract price exceeds $150,000, the Contractor shall furnish performance and payment bonds in the amounts described below with a surety company holding a certificate of authority from the Secretary of the Treasury (see Department of the Treasury Circular 570). Bonds shall be submitted on the forms provided by BSA. Bonds are to be provided within fourteen (14) days after agreement award, and before commencing work. In lieu of a payment or performance bond, the Contractor may furnish a certified check payable to BSA in the amount of one hundred percent (100%) of the bond amount.
(i) Performance Bond: 100% of the agreement price;
(ii) Payment Bond: 100% of the agreement price;
(iii) Labor hour agreements: Require only a payment bond in the amount of $75,000.
(b) Performance bonds shall remain effective until the warranty period under the Warranty of Construction Article has expired, and payment bonds shall remain effective until final payment under the Payment Article.
(c) After commencing work, BSA may require the Contractor to furnish additional security to protect BSA, the Government and persons supplying labor or materials under this Agreement if any bond furnished becomes unacceptable or the agreement price is increased so that the penal sum of any bond becomes inadequate in the opinion of BSA’s PPM Division.
PERFORMANCE AND PAYMENT BOND REQUIREMENTS. Prior to commencing any portion of the work, the Contractor shall furnish separate payment and performance bonds for its portion of the work which shall cover 100% faithful performance of and payment of all obligations arising under the Contract Documents and/or guaranteeing the payment in full of all claims for labor performed and materials supplied for the work. All bonds shall be provided by a corporate surety authorized and admitted to transact business in California as sureties. To the extent, if any, that the Contract Price is increased in accordance with the Contract Documents, the Contractor shall, upon request of the Owner, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the Owner. To the extent available, the bonds shall further provide that no change or alteration of the Contract Documents (including, without limitation, an increase in the Contract Price, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor will release the surety. If the Contractor fails to furnish the required bonds, the Owner may terminate the Contract for cause. Only bonds executed by admitted Surety insurers as defined in Code of Civil Procedure § 995.120 shall be accepted. Surety must be a California-admitted surety and listed by the U.S. Treasury with a bonding capacity in excess of the Project cost. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with § 995.660 of the California Code of Civil Procedure and proof of such is provided to the Owner.
PERFORMANCE AND PAYMENT BOND REQUIREMENTS. Requirements for bonds will be determined on a per-contract or per order basis after awarded vendor(s) have been established. No performance bond is required with the submission of proposals. The contractor shall furnish to the District prior to contract execution, the following bonds payable to the District: Contractor shall not commence work until all required bonds and insurance coverages have been obtained and such insurance has been reviewed and approved by the District. Certificates of Insurance on the current XXXXX form shall be issued to the District showing all required insurance coverages. Construction, installation and service contracts (including repair and alteration) exceeding $25,000 require that 100% Performance and Payment Bonds be furnished by the successful bidder (contractor). All such bids must include a 5% Bid Bond. Non Construction and non installation or service contracts exceeding $25,000 require that a 100% Supply Bond be furnished by the successful bidder (contractor). Bonds shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A- VIII and included on the U.S. Department of the Treasury Listing of Approved Sureties (Dept. Circular 570). The contractor shall absorb any and all costs of such Bonds. Each of the above-described bonds shall be executed by the contractor and one corporate Surety authorized to do business in the State of Texas and acceptable to the District. The Surety shall designate an agent resident in Houston, Texas, to whom any requisite notices may be delivered and on whom service of process may be had in matters arising out of such surety-ship. The contractor shall be required to absorb any and all costs of said bonds. The District shall forward bond forms to successful Proposer.
PERFORMANCE AND PAYMENT BOND REQUIREMENTS
