Common use of Performance and Payment Bonding Requirements (Construction Clause in Contracts

Performance and Payment Bonding Requirements (Construction. The Contractor shall be required to obtain performance and payment bonds as follows: (a) Performance Bonds 1. The penal amount of performance bonds shall be 100 percent of the original Agreement price, unless the TJPA determines that a lesser amount would be adequate for the protection of the TJPA. 2. The TJPA may require additional performance bond protection when an Agreement price is increased. The increase in protection shall generally equal 100 percent of the increase in Agreement price. The TJPA may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond.