Common use of Performance Bond and Payment Bond Clause in Contracts

Performance Bond and Payment Bond. 24.1 The Design-Builder will furnish a Statutory Payment Bond and a Common Law Performance Bond (Bonds) for the full and faithful performance of the Work, meeting the standards specified herein, on the bond forms attached to this Contract as Attachment 2, with a certified Power of Attorney Affidavit attached, each in the full amount of the GMP Contract Sum. 24.2 All Bonds required under this Contract will be written through a reputable and responsible surety bond agent, licensed to do business in the State of Florida and with an acceptable Surety company which holds a Certificate of Authority authorizing it to write surety bonds in Florida. Bonds will be furnished to the Owner not later than seven days after Notice of Award. Prior to the commencement of any of the Work, but not later than 30 days from the date of Notice of Award, the Design-Builder will record the Bonds in the public records of Hillsborough County, Florida. 24.3 An acceptable Surety company must meet all of the following requirements: 24.3.1 Hold a Certificate of Authority authorizing it to write surety bonds in Florida. 24.3.2 Have been in business and have a record of successful continuous operations for the last five years. 24.3.3 Be listed and maintain a current Certificate of Authority as acceptable surety on federal bonds and as acceptable reinsuring companies in accordance with U.S. Department of Treasury Circular 570, current revision. The amount of Bonds issued pursuant to this Contract will not exceed the underlying limitation in the Federal Register for that Surety. 24.3.4 Have a current rating by A.M. Best Company of “B+” up to $2,500,000.00 bond amount and “A” or better if over $2,500,000.00 bond amount. 24.3.5 Be a responsible Surety company at the time of the Bond execution. Should the Surety lose its Certificate of Authority according to the current Federal Register published by the U.S. Department of the Treasury, and/or should its Best rating be reduced below the rating required in Paragraph 24.3.4, the Owner will have the right to require Design-Builder to change the Surety to an acceptable Surety company, all at Design-Builder’s expense without reimbursement from Owner. 24.4 The Surety company will have a Florida licensed agent who is authorized to execute bonds for the Surety company and whose name is listed in the prescribed space on the bond forms and affidavit for all Bonds required by the Owner. 24.5 Upon the request of any person or entity appearing to be a potential beneficiary of the Bonds covering payment of obligations arising under this Contract, the Design- Builder will promptly furnish a copy of the Bonds or will permit a copy to be made. 24.6 If the Surety on any Bond furnished by the Design-Builder under this Contract is declared bankrupt, becomes insolvent, has its right to do business in the State of Florida terminated, ceases to be licensed to conduct business in the State of Florida, if the Owner deems the Surety upon any Bond to be unsatisfactory, or if for any reason such Bond ceases to be adequate, the Design-Builder will, at its expense, within five days after such occurrence, furnish additional or replacement Bond or Bonds in such form, amount, and with such Surety or Sureties as will be acceptable to the Owner. In such event, no further payment to the Design-Builder will be deemed to be due under this Contract until such new or additional security for the faithful performance of the Work is furnished in a manner and form acceptable to the Owner. 24.7 In the event the Bonds required in this Article are not provided, the Owner will have the right to terminate this Contract for cause. 24.8 Bond coverage shall be adjusted during the term of this Contract to reflect additions or deductions made by Change Orders or Work Orders. 24.9 The Owner is entitled to receive any refunded bond premiums resulting from Bond coverage adjustments. 24.10 The provisions of Attachment 2 – COMMON LAW PERFORMANCE BOND AND STATUTORY PAYMENT BOND are incorporated by reference into this Contract.

Performance Bond and Payment Bond. 24.1 The Design-Builder will furnish a Statutory Payment Bond and a Common Law Performance Bond (Bonds) for the full and faithful performance of the Work, meeting the standards specified herein, on the bond forms attached to this Contract as Attachment 2, with a certified Power of Attorney Affidavit attached, each in the full amount of the GMP Contract Sum. 24.2 All Bonds required under this Contract will be written through a reputable and responsible surety bond agent, licensed to do business in the State of Florida and with an acceptable Surety company which holds a Certificate of Authority authorizing it to write surety bonds in Florida. Bonds Xxxxx will be furnished to the Owner not later than seven days after Notice of Award. Prior to the commencement of any of the Work, but not later than 30 days from the date of Notice of Award, the Design-Builder will record the Bonds in the public records of Hillsborough County, Florida. 24.3 An acceptable Surety company must meet all of the following requirements: 24.3.1 Hold a Certificate of Authority authorizing it to write surety bonds in Florida. 24.3.2 Have been in business and have a record of successful continuous operations for the last five years. 24.3.3 Be listed and maintain a current Certificate of Authority as acceptable surety on federal bonds and as acceptable reinsuring companies in accordance with U.S. Department of Treasury Circular 570, current revision. The amount of Bonds issued pursuant to this Contract will not exceed the underlying limitation in the Federal Register for that Surety. 24.3.4 Have a current rating by A.M. Best Company of “B+” up to $2,500,000.00 bond amount and “A” or better if over $2,500,000.00 bond amount. 24.3.5 Be a responsible Surety company at the time of the Bond execution. Should the Surety lose its Certificate of Authority according to the current Federal Register published by the U.S. Department of the Treasury, and/or should its Best rating be reduced below the rating required in Paragraph 24.3.4, the Owner will have the right to require Design-Builder to change the Surety to an acceptable Surety company, all at Design-Builder’s expense without reimbursement from Owner. 24.4 The Surety company will have a Florida licensed agent who is authorized to execute bonds for the Surety company and whose name is listed in the prescribed space on the bond forms and affidavit for all Bonds required by the Owner. 24.5 Upon the request of any person or entity appearing to be a potential beneficiary of the Bonds covering payment of obligations arising under this Contract, the Design- Design-Builder will promptly furnish a copy of the Bonds or will permit a copy to be made. 24.6 If the Surety on any Bond furnished by the Design-Builder under this Contract is declared bankrupt, becomes insolvent, has its right to do business in the State of Florida terminated, ceases to be licensed to conduct business in the State of Florida, if the Owner deems the Surety upon any Bond to be unsatisfactory, or if for any reason such Bond ceases to be adequate, the Design-Builder will, at its expense, within five days after such occurrence, furnish additional or replacement Bond or Bonds in such form, amount, and with such Surety or Sureties as will be acceptable to the Owner. In such event, no further payment to the Design-Builder will be deemed to be due under this Contract until such new or additional security for the faithful performance of the Work is furnished in a manner and form acceptable to the Owner. 24.7 In the event the Bonds required in this Article are not provided, the Owner will have the right to terminate this Contract for cause. 24.8 Bond coverage shall be adjusted during the term of this Contract to reflect additions or deductions made by Change Orders or Work OrdersOrder. 24.9 The Owner is entitled to receive any refunded bond premiums resulting from Bond coverage adjustments. 24.10 The provisions of Attachment 2 – COMMON LAW PERFORMANCE BOND AND STATUTORY PAYMENT BOND are incorporated by reference into this Contract.

Performance Bond and Payment Bond. 24.1 The Design-Builder will furnish a Statutory Payment Bond and a Common Law Performance Bond (Bonds) for the full and faithful performance of the Work, meeting the standards specified herein, on the bond forms attached to this Contract as Attachment 2, with a certified Power of Attorney Affidavit attached, each in the full amount of the GMP Contract Sum. 24.2 All Bonds required under this Contract will be written through a reputable and responsible surety bond agent, licensed to do business in the State of Florida and with an acceptable Surety company which holds a Certificate of Authority authorizing it to write surety bonds in Florida. Bonds Xxxxx will be furnished to the Owner not later than seven days after Notice of Award. Prior to the commencement of any of the Work, but not later than 30 days from the date of Notice of Award, the Design-Builder will record the Bonds in the public records of Hillsborough County, Florida. 24.3 An acceptable Surety company must meet all of the following requirements: 24.3.1 Hold a Certificate of Authority authorizing it to write surety bonds in Florida. 24.3.2 Have been in business and have a record of successful continuous operations for the last five years. 24.3.3 Be listed and maintain a current Certificate of Authority as acceptable surety on federal bonds and as acceptable reinsuring companies in accordance with U.S. Department of Treasury Circular 570, current revision. The amount of Bonds issued pursuant to this Contract will not exceed the underlying limitation in the Federal Register for that Surety. 24.3.4 Have a current rating by A.M. Best Company of “B+” up to $2,500,000.00 bond amount and “A” or better if over $2,500,000.00 bond amount. 24.3.5 Be a responsible Surety company at the time of the Bond execution. Should the Surety lose its Certificate of Authority according to the current Federal Register published by the U.S. Department of the Treasury, and/or should its Best rating be reduced below the rating required in Paragraph 24.3.4, the Owner will have the right to require Design-Builder to change the Surety to an acceptable Surety company, all at Design-Builder’s expense without reimbursement from Owner. 24.4 The Surety company will have a Florida licensed agent who is authorized to execute bonds for the Surety company and whose name is listed in the prescribed space on the bond forms and affidavit for all Bonds required by the Owner. 24.5 Upon the request of any person or entity appearing to be a potential beneficiary of the Bonds covering payment of obligations arising under this Contract, the Design- Builder will promptly furnish a copy of the Bonds or will permit a copy to be made. 24.6 If the Surety on any Bond furnished by the Design-Builder under this Contract is declared bankrupt, becomes insolvent, has its right to do business in the State of Florida terminated, ceases to be licensed to conduct business in the State of Florida, if the Owner deems the Surety upon any Bond to be unsatisfactory, or if for any reason such Bond ceases to be adequate, the Design-Builder will, at its expense, within five days after such occurrence, furnish additional or replacement Bond or Bonds in such form, amount, and with such Surety or Sureties as will be acceptable to the Owner. In such event, no further payment to the Design-Builder will be deemed to be due under this Contract until such new or additional security for the faithful performance of the Work is furnished in a manner and form acceptable to the Owner. 24.7 In the event the Bonds required in this Article are not provided, the Owner will have the right to terminate this Contract for cause. 24.8 Bond coverage shall be adjusted during the term of this Contract to reflect additions or deductions made by Change Orders or Work Orders. 24.9 The Owner is entitled to receive any refunded bond premiums resulting from Bond coverage adjustments. 24.10 The provisions of Attachment 2 – COMMON LAW PERFORMANCE BOND AND STATUTORY PAYMENT BOND are incorporated by reference into this Contract.

Performance Bond and Payment Bond. 24.1 The Design-Builder Contractor will furnish a Statutory Payment Bond and a Common Law Performance Bond (Bonds) for the full and faithful performance of the Work, meeting the standards specified herein, on the bond forms attached to this Contract as Attachment 2, with a certified Power of Attorney Affidavit attached, each in the full amount of the GMP Contract Sum. 24.2 All Bonds required under this Contract will be written through a reputable and responsible surety bond agent, licensed to do business in the State of Florida and with an acceptable Surety company which holds a Certificate of Authority authorizing it to write surety bonds in Florida. Bonds will be furnished to the Owner not later than seven days after Notice of Award. Prior to the commencement of any of the Work, but not later than 30 days from the date of Notice of Award, the Design-Builder Contractor will record the Bonds in the public records of Hillsborough County, Florida. 24.3 An acceptable Surety company must meet all of the following requirements: 24.3.1 Hold a Certificate of Authority authorizing it to write surety bonds in Florida. 24.3.2 Have been in business and have a record of successful continuous operations for the last five years. 24.3.3 Be listed and maintain a current Certificate of Authority as acceptable surety on federal bonds and as acceptable reinsuring companies in accordance with U.S. Department of Treasury Circular 570, current revision. The amount of Bonds issued pursuant to this Contract will not exceed the underlying limitation in the Federal Register for that Surety. 24.3.4 Have a current rating by A.M. Best Company of “B+” up to $2,500,000.00 bond amount and “A” or better if over $2,500,000.00 bond amount. 24.3.5 Be a responsible Surety company at the time of the Bond execution. Should the Surety lose its Certificate of Authority according to the current Federal Register published by the U.S. Department of the Treasury, and/or should its Best rating be reduced below the rating required in Paragraph 24.3.4, the Owner will have the right to require Design-Builder Contractor to change the Surety to an acceptable Surety company, all at Design-BuilderContractor’s expense without reimbursement from Owner. 24.4 The Surety company will have a Florida licensed agent who is authorized to execute bonds for the Surety company and whose name is listed in the prescribed space on the bond forms and affidavit for all Bonds required by the Owner. 24.5 Upon the request of any person or entity appearing to be a potential beneficiary of the Bonds covering payment of obligations arising under this Contract, the Design- Builder Contractor will promptly furnish a copy of the Bonds or will permit a copy to be made. 24.6 If the Surety on any Bond furnished by the Design-Builder Contractor under this Contract is declared bankrupt, becomes insolvent, has its right to do business in the State of Florida terminated, ceases to be licensed to conduct business in the State of Florida, if the Owner deems the Surety upon any Bond to be unsatisfactory, or if for any reason such Bond ceases to be adequate, the Design-Builder Contractor will, at its expense, within five days after such occurrence, furnish additional or replacement Bond or Bonds in such form, amount, and with such Surety or Sureties as will be acceptable to the Owner. In such event, no further payment to the Design-Builder Contractor will be deemed to be due under this Contract until such new or additional security for the faithful performance of the Work is furnished in a manner and form acceptable to the Owner. 24.7 In the event the Bonds required in this Article are not provided, the Owner will have the right to terminate this Contract for cause. 24.8 Bond coverage shall be adjusted during the term of this Contract to reflect additions or deductions made by Change Orders or Work Orders. 24.9 The Owner is entitled to receive any refunded bond premiums resulting from Bond coverage adjustments. 24.10 The provisions of Attachment 2 – COMMON LAW PERFORMANCE BOND AND STATUTORY PAYMENT BOND are incorporated by reference into this Contract.