18-Bid Guarantee and Performance bond.pdf

Bid Guarantee

Bidders shall furnish a bid guaranty in the form of a bid bond, or certified treasurer’s or cashier’s check issued by a responsible bank or trust company, made payable to the CITY OF TALLAHASSEE. The amount of such guaranty shall be equal to or 5 % of the total bid price.

In submitting this bid, it is understood and agreed by bidder that the CITY OF TALLAHASSEE reserves the right to reject any and all bids, or part of any bid, and it is agreed that the Bid may not be withdrawn for a period of [90] days subsequent to the opening of bids, without the written consent of the CITY OF

TALLAHASSEE.

It is also understood and agreed that if the undersigned bidder should withdraw any part or all of his bid within [90] days after the bid opening without the written consent of the CITY OF TALLAHASSEE, or refuse or be unable to enter into this Contract as provided above, or refuse or be unable to furnish adequate and acceptable Performance and Payment Bonds, or refuse or be unable to furnish adequate and acceptable insurance, as provided above, it shall forfeit its bid guaranty to the extent CITY OF TALLAHASSEE’S damages occasioned by such withdrawal, or refusal, or inability to enter into an agreement, or provide adequate security thereof.

It is further understood and agreed that to the extent the defaulting bidder's bid guaranty shall prove inadequate to fully recompense CITY OF TALLAHASSEE for the damages occasioned by default, then the undersigned bidder agrees to indemnify CITY OF TALLAHASSEE and pay over to CITY OF TALLAHASSEE the difference between the bid guarantee and CITY OF TALLAHASSEE’S total damages so as to make CITY OF TALLAHASSEE whole.

The undersigned understands that any material alteration of any of the above or any of the material contained herein, other than that requested will render the bid unresponsive.

Performance Guarantee

A Performance Guarantee in the amount of 100% of the Contract value is required by the CITY OF TALLAHASSEE to ensure faithful performance of the Contract. Either a Performance Bond or an Irrevocable Stand-By Letter of Credit shall be provided by the Contractor and shall remain in full force for the term of the Agreement. The successful Bidder shall certify that it will provide the requisite Performance Guarantee to the CITY OF TALLAHASSEE within ten (10) business days from Contract execution. The CITY OF TALLAHASSEE requires all Performance Bonds to be provided by a fully qualified surety company acceptable to the CITY OF TALLAHASSEE and listed as a company currently authorized under 31 C.F.R. part 22 as possessing a Certificate of Authority as described hereunder. CITY OF TALLAHASSEE may require additional performance bond protection when the contract price is increased. The increase in protection shall generally equal 100 percent of the increase in contract price. The CITY OF TALLAHASSEE may secure additional protection by directing the Contractor to increase the amount of the existing bond or to obtain an additional bond.

If the Bidder chooses to provide a Letter of Credit as its Performance Guarantee, the Bidder shall furnish with its bid, certification that an Irrevocable Stand-By Letter of Credit will be furnished should the Bidder become the successful Contractor. The Bidder shall also provide a statement from the banking institution certifying that an Irrevocable Stand-By Letter of Credit for the action will be provided if the Contract is awarded to the Bidder. The Irrevocable Stand-By Letter of Credit will only be accepted by the CITY OF TALLAHASSEE if:

1. A bank in good standing issues it. The CITY OF TALLAHASSEE will not accept a Letter of Credit from an entity other than a bank.

2. It is in writing and signed by the issuing bank.

3. It conspicuously states that it is an irrevocable, non-transferable, “standby” Letter of Credit.

4. The CITY OF TALLAHASSEE is identified as the Beneficiary.

5. It is in an amount equal to 100% of the Contract value. This amount must be in U.S. dollars.

6. The effective date of the Letter of Credit is the same as the effective date of the Contract

7. The expiration date of the Letter of Credit coincides with the term of this Agreement.

8. It indicates that it is being issued in order to support the obligation of the Contractor to perform under the Contract. It must specifically reference the Contract between the CITY OF TALLAHASSEE and the Contractor the work stipulated herein.

The issuing bank’s obligation to pay will arise upon the presentation of the original Letter of Credit and a certificate and draft (similar to the attached forms contained in Sections X and Y) to the issuing bank’s representative at a location and time to be determined by the parties. This documentation will indicate that the Contractor is in default under the Contract.

Payment Bonds

A Labor and Materials Payment Bond equal to the full value of the contract must be furnished by the contractor to CITY OF TALLAHASSEE as security for payment by the Contractor and subcontractors for labor, materials, and rental of equipment. The bond may be issued by a fully qualified surety company acceptable to (CITY OF TALLAHASSEE) and listed as a company currently authorized under 31 C.F.R. part 223 as possessing a Certificate of Authority as described thereunder.

Sample Bond Certifications

Performance Guarantee Certification

The undersigned hereby certifies that the Bidder shall provide a Performance Guarantee in accordance with the Specifications.

Designate below which form of Performance Guarantee shall be provided:

Performance Bond

Irrevocable Stand-By-Letter of Credit

BIDDER'S NAME:

AUTHORIZED SIGNATURE:

TITLE:

DATE:

Performance Bond

KNOW ALL MEN BY THESE PRESENTS: that (Insert full name and address and legal title of Contractor) as Principal, hereinafter called Contractor, and (Insert full name and address or legal title of Surety) as Surety, hereinafter called Surety, are held and firmly bound unto CITY OF TALLAHASSEE as Obligee, hereinafter called Authority, in the amount of Dollars ($) for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, Contractor has by written agreement dated , 20 , entered into a contract with the CITY OF TALLAHASSEE for Contract No. , which contract is by reference made a part hereof, and is hereinafter referred to as the Contract.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said 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 OF TALLAHASSEE.

Whenever Contractor shall be, and is declared by the CITY OF TALLAHASSEE to be in default under the Contract, the CITY OF TALLAHASSEE having performed CITY OF TALLAHASSEE’S obligations thereunder, the Surety may promptly remedy the default, or shall promptly

1. Complete the Contract in accordance with it terms and conditions, or

2. Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the lowest responsible bidder, or, if the CITY OF TALLAHASSEE elects, upon determination by the CITY OF TALLAHASSEE and the Surety jointly of the lowest responsible bidder, arrange for a contract between such bidder and the Authority, 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, the amount set forth in the first paragraph hereof. The term "balance of the contract price," as used in this paragraph, shall mean the total amount payable by the CITY OF TALLAHASSEE to Contractor under the Contract and any amendments thereto, less the amount properly paid by the CITY OF TALLAHASSEE to Contractor.

Any suit under this bond must be instituted before the expiration of two (2) years from the date on which final payment under the Contract falls due.

No right of action shall accrue on this bond to or for the use of any person or corporation other than the CITY OF TALLAHASSEE or the heirs, executors, administrators or successors of the CITY OF TALLAHASSEE.

Signed and sealed this day of , 20 .

WITNESS PRINCIPAL

(SEAL)

(Title)

WITNESS SURETY

(SEAL)

(Title)

Attach hereto proof of authority of officers or agents to sign bond.

Irrevocable Stand-By Letter Of Credit Certificate

The undersigned states that he/she is of the of the

(Title)

(The "Beneficiary") and hereby

(Name of Beneficiary)

Certifies on behalf of the Beneficiary to (the "Bank), with

(Name of Issuing Bank)

Reference to Irrevocable Standby Letter of Credit No. Issued by the Bank (the "Letter of Credit"), that:

1. The undersigned is duly authorized to execute and deliver this certificate on behalf of the Beneficiary.

2. The Beneficiary is making a drawing under the Letter of Credit.

3. An Event of Default has occurred under Contract No. .

4. The amount of the draft presented with this certificate does not exceed the total maximum amount drawable today under the Letter of Credit as provided therein.

, this certificate is executed this day of , 20 .

(NAME OF BENEFICIARY)

By:

Its: