Common use of Contractor Bonds Clause in Contracts

Contractor Bonds. A. The Contractor shall provide performance and payment (labor and materials) bonds in the form provided by the Awarding Authority, executed by a surety licensed by the Commonwealth of Massachusetts Division of Insurance and whose name appears on United States Treasury Department Circular 570. Each such bond shall be in the amount of the Contract Price. B. If at any time prior to final payment to the Contractor, the Contractor’s surety: (1) is adjudged bankrupt or has made a general assignment for the benefit of its creditors; (2) has liquidated all assets and/or has made a general assignment for the benefit of its creditors; (3) is placed in receivership; (4) otherwise petitions a state or federal court for protection from its creditors; or (5) allows its license to do business in Massachusetts to lapse or be revoked; then the Contractor shall, within twenty-one (21) days of any such action listed above, provide the Awarding Authority with new performance and payment bonds as described in Article XVI.1.A above. Such bonds shall be provided solely at the Contractor's expense.