Common use of Required Bonds Clause in Contracts

Required Bonds. The Contractor shall, within ten (10) days from the Notice to Proceed furnish bonds to the Owner in the full amount of the contract price, covering both the faithful performance of the Contract and the payment of all obligations for labor and materials arising thereunder, on such designated forms as the Owner may prescribe and with such sureties as it may approve. Bonds shall remain in effect for the duration of the Contractor’s obligations under this Contract. The amount of the bonds shall be increased, if necessary, to reflect approved changes in the Work that result in an increase in the total cost of the Work plus the Contractor’s fees. Such bonds shall be duly executed by a qualified surety licensed to do business in the State of Colorado, conditioned upon the true and faithful performance of the Contract, and shall provide that if the Contractor or its subcontractors fail to duly pay for any labor, materials, or other supplies used or consumed by such Contractor or its subcontractors in the performance of the Work contracted to be done, the surety will pay the same in an amount not exceeding the sum specified in the bond, as adjusted by approved Change Orders, and together with interest as provided by law. The performance bond shall additionally guarantee that the Contractor shall remedy any omissions, correct any and all defects, and adjust and make operable all component parts of Work falling under the requirements of the Contract that may be called to the Contractor’s attention within a period of twelve (12) months following the date of the letter of acceptance.