Common use of Performance/Payment Bond Clause in Contracts

Performance/Payment Bond. Unless otherwise specified in any Special Conditions, CONTRACTOR shall furnish a performance bond and payment bond each in the amount equal to 100% of the Contract amount. The performance bond shall guarantee the prompt, competent and faithful performance of all terms and conditions of the Contract. The payment bond shall be for 100% of the Contract amount and guarantee, without limitation, the payment in full of all claims for labor, services, materials, supplies, and the like, for the Work as required by Civil Code §§ 9550 and 9554. All bonds shall be provided by an admitted surety insurer acceptable to the DISTRICT, in its absolute discretion. Personal sureties and unregistered sureties are unacceptable. A corporate surety authorized and admitted to transact business in California shall provide the bonds. The bonds shall be in the form set forth in these Contract Documents, and shall also contain all other requirements prescribed by Applicable Law. CONTRACTOR shall supply DISTRICT with documentation establishing the necessary requirements of the surety consistent with California law. To the extent, if any, the Contract amount is increased in accordance with the Contract Documents. CONTRACTOR shall cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to DISTRICT. The bonds shall further provide no change or alteration of the Contract Documents (including, without limitation, an increase in the Contract amount, as referred to above), adjustment to any milestones and/or Contract time, or modifications of the time, terms, or conditions of payment to the CONTRACTOR will release or exonerate the sureties. If CONTRACTOR fails to furnish the required bonds, or fails to keep such bonds in full force and effect up through such times that such bonds are otherwise required to be in force and effect under the law, DISTRICT may terminate CONTRACTOR’s right to proceed with the Work and/or terminate the Contract for cause.