2-09 EXHIBIT E - Security Bond.docx

This is a Security Bond exhibit document for The University of Texas System's Red & Charline McCombs Softball Stadium Renovation project, a Construction Manager-at-Risk solicitation (RFP-CMR1023053-260004) in Texas. The security bond serves as a preliminary financial instrument required from the selected Construction Manager prior to execution of the Guaranteed Maximum Price (GMP) agreement. The bond obligates the Principal and Surety to secure the performance of contract terms and conditions, with the bond amount set at five percent (5%) of the project's Guaranteed Maximum Price. The document establishes The Board of Regents of The University of Texas System as the Obligee and requires that the bonded party provide Performance and Payment Bonds as specified in the final contract within the timeframe stipulated by the Contract.

The security bond's penal sum is calculated at five percent of the GMP, which will be determined during the proposal evaluation process. The bond conditions establish that if the Principal executes an acceptable GMP proposal and subsequently provides the required Performance and Payment Bonds, the security bond obligation becomes void. If the bonded party fails to meet these conditions, the Obligee may recover the difference between the Principal's GMP proposal and any higher amount paid to another contractor to complete the work, with liability capped at the bond's penal sum. The overall project Construction Cost Limitation is $9,400,000.00, meaning the security bond would be based on five percent of the negotiated GMP, not to exceed $470,000.