Common use of Performance and Payment Bonds Clause in Contracts

Performance and Payment Bonds. 14.1 A Performance and a Payment Bond shall be submitted by CONTRACTOR for all Contracts in excess of fifty thousand U.S. Dollars ($50,000.00) or if indicated in Article 6. When indicated in Article 6, a clean irrevocable letter of credit payable to the OWNER from a bank acceptable to the OWNER may be substituted for the bonds.

Performance and Payment Bonds. 14.1 A Performance and a Payment Bond for the full contract amount shall be submitted by CONTRACTOR for all Contracts in excess of fifty thousand U.S. Dollars ($50,000.00) or if indicated in Article 6. When indicated in Article 6, a clean irrevocable letter of credit payable to the OWNER from a bank acceptable to the OWNER may be substituted for the bonds.