Common use of Performance and Payment Bonds - Construction Clause in Contracts

Performance and Payment Bonds - Construction. The Contractor shall be required to obtain performance and payment bonds as follows: Performance bonds. The penal amount of performance bonds shall be one hundred percent (100%) of the original Contract sum, unless FTA determines in writing that a lesser amount would be adequate for the protection of the Federal interest. The bond shall be issued by a fully qualified surety company acceptable to STA and listed as a company currently authorized under 31 CFR part 223 as possessing a Certificate of Authority as described thereunder. STA may require additional performance bond protection when the Contract sum is increased. The increase in protection shall generally equal one hundred percent (100%) of the increase in Contract sum. STA may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond.

Performance and Payment Bonds - Construction. The Contractor shall be required to obtain performance and payment bonds as follows: Performance bonds. The penal amount of performance bonds shall be one hundred percent (100%) of the original Contract sum, unless FTA determines in writing that a lesser amount would be adequate for the protection of the Federal interest. The bond shall be issued by a fully qualified surety company acceptable to STA and listed as a company currently authorized under 31 CFR part Part 223 as possessing a Certificate of Authority as described thereunder. STA may require additional performance bond protection when the Contract sum is increased. The increase in protection shall generally equal one hundred percent (100%) of the increase in Contract sum. STA may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond.