GUARANTEE BONDS Clause Samples
GUARANTEE BONDS. Before any performance under this Contract, the CONTRACTOR shall provide the payment bond required by California Civil Code Section 9550 in the amount of 100 percent of the total amount payable under this Contract to secure the payment of all workers and suppliers, and the performance bond required by California Public Contract Code Section 20129 in the amount of 100 percent of the total amount payable under this Contract to secure faithful performance of all terms and conditions of this Contract, in a form approved by the COUNTY. Both securities shall contain provisions which automatically increase amounts thereof and/or time of completion or both for all change orders, extensions and additions to the work provided pursuant to this Contract. Any work performed prior to COUNTY’s express approval of the CONTRACTOR’s payment and performance bonds shall constitute material breach of this Contract, and the COUNTY shall not be liable for payment for any work performed under this Contract or otherwise prior to COUNTY’s approval of the payment and performance bonds.
GUARANTEE BONDS. Pursuant to Section 1.2.9, Security, of the General Specifications (see Special Provision 5.1.3, Standard Specifications for Highway Construction and Bridge Construction Work), the successful Bidder shall deposit with the Owner, at the time of signing the Contract, the following bonds:
a) a Performance Bond in the amount of fifty percent (50%) of the agreed Tender price, covering the faithful performance of the Contract.
b) a Labour and Materials Payment Bond in the amount of fifty percent (50%) of the agreed Tender price. Both bonds shall be issued by the same Surety Company licensed to do business in the Province wherein the work is located. The cost of the bonds shall be borne by the Contractor.
GUARANTEE BONDS. If the Contractor fails or refuses to provide the aforesaid insurance, the Agency may, at its discretion, after notice as provided for in the contract, cancel this Contract and /or utilize the Security Deposit as well as any sums due to the contractor, and procure the insurance on behalf of the contractor without prejudice to any other rights that it may have in law or equity.