Common use of Performance, Payment, and Other Bonds Clause in Contracts

Performance, Payment, and Other Bonds. 5.0.1 Contractor shall furnish Performance and Payment Bonds, each in an amount at least equal to the Contract Price as security for the faithful performance and payment of all Contractor's obligations under the Contract Documents. These Bonds shall remain in effect at least until one year after the date when final payment becomes due, except as provided otherwise by laws or regulations or by the Contract Documents. Contractor shall also furnish such other Bonds as are required by the Contract Documents. All Bonds shall be in the form prescribed by the Contract Documents except as provided otherwise by laws or regulations, and shall be executed by sureties named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies" published in Circular 570 (amended) by the Audit Staff, Bureau of Government Financial Operations, U.S. Treasury Department. All Bonds signed by an agent must be accompanied by a certified copy of the agent's authority to act. The Contractor shall furnish the performance and payment bond in the form provided in the Contract Documents or approved by the Town, the earlier of ten (10) days after the Town has issued the notice of award or delivery of the executed Agreement. The Town reserves the right to exclude any Surety Company on any ground it deems appropriate. The cost of the bonds shall be included in the bid. 5.1 If the surety on any Bond furnished by Contractor is declared bankrupt, becomes insolvent, has its right to do business terminated in any state where part of the Project is located, or ceases to meet any of the requirements of the Contract Documents, Contractor shall within ten days thereafter substitute another Bond and surety, both of which must be acceptable to the Town.

Performance, Payment, and Other Bonds. 5.0.1 A. Contractor shall furnish Performance performance and Payment Bondspayment bonds, each in an amount at least equal to the Contract Price as security for the faithful performance and payment of all of Contractor's ’s obligations under the Contract Documents. These Bonds bonds shall remain in effect at least until one year after the date when final payment becomes duedue or until completion of the correction period specified in Paragraph 13.07, whichever is later, except as provided otherwise by laws Laws or regulations Regulations or by the Contract Documents. Contractor shall also furnish such other Bonds bonds as are required by the Contract Documents. . B. All Bonds bonds shall be in the form prescribed by the Contract Documents except as provided otherwise by laws Laws or regulationsRegulations, and shall be executed by such sureties as are named in the current list of "“Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies" ” as published in Circular 570 (amended) by the Audit StaffFinancial Management Service, Bureau of Government Financial OperationsSurety Bond Branch, U.S. Treasury DepartmentDepartment of the Treasury. All Bonds bonds signed by an agent or attorney-in-fact must be accompanied by a certified copy of the agent's that individual’s authority to actbind the surety. The Contractor evidence of authority shall furnish show that it is effective on the performance and payment bond in date the form provided in the Contract Documents agent or approved by the Town, the earlier of ten (10) days after the Town has issued the notice of award or delivery of the executed Agreement. The Town reserves the right to exclude any Surety Company on any ground it deems appropriate. The cost of the bonds shall be included in the bidattorney-in-fact signed each bond. 5.1 C. If the surety on any Bond bond furnished by Contractor is declared bankrupt, bankrupt or becomes insolvent, has insolvent or its right to do business is terminated in any state where any part of the Project is located, located or it ceases to meet any of the requirements of the Contract DocumentsParagraph 5.01.B, Contractor shall promptly notify Owner and Engineer and shall, within ten 20 days thereafter substitute after the event giving rise to such notification, provide another Bond bond and surety, both of which must be acceptable to shall comply with the Townrequirements of Paragraphs 5.01.B and 5.02.