Performance Bond/Construction Bond Sample Clauses

Performance Bond/Construction Bond. As provided by the Act of 1967, December 20, P.L. 869 (8 P.S. § 193, et seq., as amended), ESCO shall at the time of execution of this Contract furnish to the PEA and the City security for the faithful performance and completion of the Work and for compliance with the Contract in the form of a performance bond, with a surety company approved by the PEA and the City, in a sum equal to 100% of the amount of the Contract Sum. In addition, as provided by the Act of 1967, December 20, P.L. 869 (8 P.S. § 193, as amended), the ESCO will be required at the time of execution of the Contract to give a payment bond, with a surety company approved by the City, in a sum one hundred percent (100%) of the amount of the Contract Sum, conditioned for the full payment of Subcontractors and others furnishing labor and materials in the performance of the Contract. The ESCO shall provide evidence of bonding in Exhibit I (Performance Bond/Construction Bond), include evidence satisfactory to the City that the party issuing the bonds has the authority to bind the issuing surety company. If the ESCO fails to furnish and maintain such bonds, the PEA or the City may purchase such bonds on behalf of the ESCO and the ESCO shall pay the cost thereof to the PEA or the City upon demand.