6.0_Bonding_Requirements_24_CFR_PART_85.36.pdf
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- Attached to
- Pettis Park Pavilion State and local contract opportunity
- Solicitation number
- 19-25-CIP
- Issued by
- Volusia County, Florida
About this file
This document details the 24 CFR Part 85.36 Administrative Requirements for Grants and Cooperative Agreements applicable to State, Local, and Federally Recognized Indian Tribal Governments, specifically focusing on mandatory bonding requirements for construction or facility improvement contracts exceeding the simplified acquisition threshold.
The bonding requirements mandate three key provisions: (1) a bid guarantee of five percent of the bid price, which ensures the bidder will execute required contractual documents if their bid is accepted; (2) a performance bond for 100 percent of the contract price to secure fulfillment of all contractor obligations; and (3) a payment bond also for 100 percent of the contract price to assure payment to all persons supplying labor and materials for the contract. The awarding agency may accept the grantee's existing bonding policy if they determine their interests are adequately protected, otherwise these minimum requirements must be followed. Proof of bonding will be verified prior to issuing a notice to proceed.
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Text version
24 CFR PART 85.36 Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments
Compliance with the following bonding requirements is mandatory.
Proof of bonding will be verified prior to issuance of the notice to proceed.
(h) Bonding requirements.
For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency may accept the bonding policy and requirements of the grantee or sub grantee provided the awarding agency has made a determination that the awarding agency's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
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