Payment Bond; Performance Bond Sample Clauses
The Payment Bond and Performance Bond clause requires contractors to provide financial guarantees ensuring both the payment of subcontractors and suppliers, and the satisfactory completion of the contracted work. Typically, a payment bond protects those supplying labor and materials by guaranteeing they will be paid even if the contractor defaults, while a performance bond assures the project owner that the contractor will fulfill all contractual obligations. This clause is essential for mitigating financial risk, protecting stakeholders, and ensuring the project is completed as agreed.
Payment Bond; Performance Bond. Prior to commencement of Work, the Contractor shall obtain and deliver to the District a Labor and Materials Payment Bond and a Performance Bond. Bonds required hereunder will be accepted by the District only if: (i) they are in the form and content included in the Contract Documents; (ii) the Bonds are issued by an Admitted Surety Insurer under California law; and (iii) in a penal sum equal to one hundred percent (100%) of the Contract Price.
Payment Bond; Performance Bond. Contractor shall not commence the Work until it has provided to the District, a Payment (Labor and Material) Bond and a Performance Bond, in the forms attached hereto, each in an amount equivalent to one hundred percent (100%) of the Contract Price issued by a surety admitted to issue bonds in the State of California and otherwise acceptable to the District. The District reserves to waive this requirement in writing at its sole discretion in the event the Contract Price is below $25,000.
Payment Bond; Performance Bond. A payment bond and a performance bond, each in an amount equal to the full contract amount, will be required of the Contractor immediately after notice of Contract award, and before final Contract execution. Each bond shall be in accordance with Arizona Revised Statutes (A.R.S.) § 34-201, et seq., as amended from time to time. Arizona law provides that the bonds shall be executed solely by a bonding company, liability insurance carrier, or excess insurance carrier that holds a certificate of authority to transact surety business in Arizona, issued by the director of the department of insurance pursuant to A.R.S. title 20, chapter 2, article 1, as amended from time to time. Additionally, the City requires that the bonding company, liability insurance carrier, or excess insurance carrier have a Financial Strength Rating of A- or better and a Financial Size Category of VII or higher, as listed in the most recent “Best’s Key Rating Guide – Property/Casualty,” published by A.M. Best Company. An individual surety or sureties shall not execute either bond, even if the requirements of A.R.S. § 7-101 are satisfied.
Payment Bond; Performance Bond. Prior to commencement of the Work, the Contractor shall furnish a Performance Bond as security for Contractor's faithful performance of the Contract and a Labor and Material Payment Bond as security for payment of persons or entities performing work, labor or furnishing materials in connection with Contractor's performance of the Work under the Contract Documents. Unless otherwise stated in the Special Conditions, the amounts of the Performance Bond and the Payment Bond required hereunder shall be one hundred percent (100%) of the Contract Price. Said Labor and Material Payment Bond and Performance Bond shall be in the form and content set forth in the Contract Documents. The failure or refusal of the Contractor to furnish either the Performance Bond or the Labor and Material Payment Bond in strict conformity with this Article 6.9 may be deemed by the District as a default by the Contractor of a material obligation hereunder. Upon request of the Contractor, the District may consider and accept, but is not obligated to do so, multiple sureties on such bonds. The Surety on any bond required under the Contract Documents shall be an Admitted Surety Insurer as that term is defined in California Code of Civil Procedure '995.120.