6-Solicitation-Form-7-Payment-Bond-Form.pdf

Based on SCCPSS Sample Payment Bond Form -Construction Bid Template-4/12/25

BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM

SOLICITATION FORM 7

Sample Payment Bond Form

(for reference only) Payment Bond Requirements:

If a Bidder’s Bid exceeds $100,000 and the Bidder is the successful Bidder who is awarded a contract at the end of this solicitation, then the successful Bidder will be required to provide a Payment Bond as a condition precedent to the execution of any contract.

Payment Bonds shall be in an amount equal to the total amount payable by the terms of the contract, which, which shall be the total amount agreed to in the final contract approved by the School District. If the amount payable by the terms of the initial contract is increased by agreement of the School District, then the School District may require that the successful Bidder increase the amount of the Payment Bond as the contract amount tis increased.

Payment Bonds should be furnished on forms accepted as standard by the insurance industry and shall be sufficiently similar to this sample Payment Bond Form attached as Solicitation Form 7. The surety named in the bond should either be authorized to do business in this state pursuant to a current certificate of authority to transact surety business by the Georgia Commissioner of Insurance or on the United States Department of Treasury’s list of approved bond sureties. The District shall assess, in its discretion, the sufficiency of the Payment Bond form and the surety.

Sample Payment Bond:

PAYMENT BOND Bond No.

KNOW ALL MEN BY THESE PRESENTS:

That____________________________________________________________ as Principal (hereinafter referred to as the (Legal Title and Address of the Contractor)

"Principal") and ____________________________________________________________ as Surety (hereinafter referred (Legal Name and Address of the Surety) to as "Surety"), are held and firmly bound unto the Board of Public Education of the City of Savannah and the County of Chatham as Obligee (hereinafter referred to as "Owner") for the use and benefit of claimants defined, hereinafter in the amount of:__________________________________________________________ DOLLARS (Insert Contract Price) to which payment Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns jointly and severally, firmly by these presents.

WHEREAS, the above bounden Principal has entered into a contract with Owner dated ___________________ for ___________________________________________________________ in accordance with the drawings and

(Insert Name of Work) specifications prepared by: _________________________________________________ which Contract is incorporated herein (Here insert Full Name and Title) by reference and made a part hereof, and is hereinafter referred to as the Contract.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that if the Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and materials supplied in the prosecution of the work provided for in said Contract, then this obligation shall be void, otherwise it shall remain in full force and effect subject, however, to the following conditions:

(1) The said Surety to this bond, for value received, hereby stipulates and agrees that no change or changes, extension of time or extensions of time, alteration or alterations or addition or additions to the terms of the Contract or to the work to be performed thereunder, or the specifications or drawings accompanying same, or the exercise of the Owner’s right to do work with separate contractors or to correct work pursuant to the terms of the Contract, shall in any way affect its

Based on SCCPSS Sample Payment Bond Form -Construction Bid Template-4/12/25 obligation on this bond, and it does hereby waive notice of any such change or changes, extension of time or extensions of time, alteration or alterations or addition or additions to the terms of the Contract or to the Work or to the specifications or drawings. In addition, the Surety to this bond, for value received, hereby agrees to the provisions of Paragraph 1.5.1.3 for increases in the penal amount of this bond and waives notice from the Owner of any such changes.

(2) A claimant is defined as any Subcontractor or any person supplying labor, materials, machinery, or equipment in the prosecution of the work provided for in said Contract.

(3) Every person entitled to the protection hereunder and who has not been paid in full for labor or materials furnished in the prosecution of the work referred to in said bond before the expiration of a period of ninety (90) days after the day on which the last of the labor was done or performed by him, or materials or equipment or machinery was furnished or supplied by him for which claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of the commencement of such action and to prosecute such action to final execution and judgment for the sum or sums due him, provided, however, that any person having direct contractual relationship with a Subcontractor, but no contractual relationship express or implied with the Contractor furnishing said payment bond shall have (a) given written notice to said Contractor within ninety (90) days from the day on which such person did or performed the last of the labor, or furnished the last of the materials or machinery or equipment for which such claim is made stating with substantial accuracy the amount claimed and the name of the party to whom the materials were furnished or supplied or for whom the labor was performed or done; and (b) if the Contractor has filed a Notice of Commencement in accordance with the requirements of O.C.G.A. §13-10-62 and Articles 4.3.2 of the Contract, given to said contractor a written Notice to Contractor within 30 days from the filing of the Notice of Commencement or 30 days following the first delivery of labor, materials, machinery or equipment, whichever is later, setting forth:

A) The name, address, and telephone number of the person providing labor, material, machinery, or equipment;

B) The name and address of each person at whose instance the labor, material, machinery or equipment is being furnished;

C) The name and the location of the public work; and

D) A description of the labor, material, machinery, or equipment being provided and, if known, the Contract Sum or anticipated value of the labor, material, machinery, or equipment to be provided or the amount claimed to be due, if any.

It is provided further that nothing contained herein shall limit the right of action to said 90-day period. Notice may be served by the depositing of a notice, registered mail, postage paid, duly addressed to the Contractor at any place he maintains an office or conducts his business, or his residence, in any post office or branch post office or any letter box under the control of the Post Office Department or notice may be served in any manner in which the sheriffs of Georgia are authorized by law to serve summons or process. Every suit instituted under this section shall be brought in the name of the claimant without Owner being made a party thereof. The official who has custody of said bond is authorized and directed to furnish, to any person making application thereof who submits an affidavit that he has supplied labor or materials for such work and payment therefore has not been made, or that he is being sued on any such bond, a copy of such bond and the contract for which it was given, certified, by the official who has custody of said bond and contract shall be admitted in evidence without further proof. Applicants shall pay for such certified statements and such fees as the official fixes to cover the cost of preparation thereof, but in no case shall the fixed fee exceed the fees that the clerks of the superior courts are permitted to charge for similar copies.

(4) No action can be instituted on this bond after one year from the date of the Final Certificate of the Design Professional.

(5) Further, this bond shall be the Payment Bond furnished in compliance with under O.C.G.A. Title 36 chapter 91 shall be subject to increase in the penal amount of the bond pursuant to such statutes and Paragraph 1.5.1.3 of the Contract.

(6) For the purposes of this bond, the name and address of the Authorized State of Georgia Licensed Agent to whom correspondence and telecommunications may be addressed and/or with whom business concerning this bond may be conducted will be as follows:

NAME

ADDRESS

CITY STATE ZIP CODE

TELEPHONE NUMBER Solicitation Form 7