00605_Performance_Bond.docx

SECTION 00605

PROCUREMENT PERFORMANCE BOND

(100% of Contract Price)

KNOW ALL MEN BY THESE PRESENTS, that we, _____________________________________________________________________, as Principal/Contractor,and____________________________________________________, as Surety, are held and firmly bound unto the CITY OF SANFORD, FLORIDA, as a municipal corporation of the State of Florida, as Obligee/City, in the sum of (Written Dollar Amount) dollars ($_______________________________) lawful money of the United States of American, for the payment of which well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally by these presents.

WHEREAS, Contractor has by written agreement dated _____________, 20___, entered into a Contract with the City of Sanford in accordance with a bid (whether a proposal, response or other submission, by whatever name or of whatever nature) issued by the City for the furnishing of all labor, materials, equipment, machinery, tools, apparatus, means of transportation for, and the performance of the work covered in the procurement documents which relative to the City’s purchasing or procurement solicitation entitled _________________________________________________________________.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said Contract as obligated to do so for the City and in accordance with all terms and conditions of the Contract, then this obligation shall be null and void; otherwise, it shall remain in full force and effect.

THE SURETY HEREBY WAIVES notice of any alteration or extension of time made by the City.

WHENEVER CONTRACTOR SHALL BE AND DECLARED by the City to be in default under the Contract, the City having performed City’s obligations thereunder, the Surety may promptly remedy the default or shall promptly:

(1). Complete the Contract in accordance with its terms and conditions to include, but not be limited to, the time of performance which is of the essence; or

(2). Expeditiously obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the most responsible bidder, or if the City elects, upon determination by the City and the Surety jointly of the most responsible bidder, arrange for a Contract between such bidder and the City, and make available as work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including other costs and damages for which the Surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term “balance of the contract price”, as used in this paragraph, shall be paid to the Contractor under the contract and any amendments thereto, less the amount properly paid by the City to the Contractor.

NO RIGHT OF ACTION SHALL ACCRUE on this bond to or for the use of any person or corporation other than the City named herein or the heirs, executors, administrators, or successors of the City.

NOTICE TO THE OBLIGEE that this Bond will expire prior to performance of the Principal’s obligations shall be deemed a default. Notices under this bond shall be directed to the City Manager at the City Hall of the City of Sanford. And notices to the Principal and Surety shall be to their mailing addresses as set forth in the records of the Florida Department of State.

THIS BOND SHALL BE KEPT IN FULL FORCE AND EFFECT by the Principal at all times until release by the Obligee. In the event of any material change, cancellation, expiration or non-payment of premiums, the Surety shall notify the City by certified mail or registered mail, return receipt requested, at least thirty (30) days prior to the effective date of the change, cancellation, or expiration of this Bond. Notice to the Obligee that this Bond will expire prior to performance of the Principal’s obligations shall be deemed a default.

SIGNED, SEALED AND DATED THIS ___ DAY OF _________________, 20_____.

[Signature lines in a legally binding form.]

ACCEPTED BY:

ATTEST: CITY OF SANFORD:

Approved as to form and legality:

Lindsay Greene, City Attorney

agent’s authority to act.

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