Appendix 7 - Bonds.pdf
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- Solicitation number
- BPM057381
- Issued by
- Maryland
About this file
Appendix 7 - Bonds is a reference document outlining bonding requirements for a state and local contract opportunity. The document establishes mandatory bonding provisions that contractors must satisfy as a condition of contract award and performance. Bonding requirements typically include bid bonds, performance bonds, and payment bonds, each serving distinct protective functions for the contracting agency. Bid bonds guarantee that a successful bidder will execute the contract and provide required performance and payment bonds. Performance bonds ensure the contractor completes all contractual obligations in accordance with specifications and timelines. Payment bonds protect subcontractors and material suppliers by guaranteeing payment for labor, materials, and services provided during contract performance. The specific bond amounts, percentages, and surety requirements are detailed within this appendix and must be obtained from an approved surety company licensed to conduct business within the relevant jurisdiction.
Contractors must provide evidence of bonding capability as part of their bid submission and maintain continuous bond coverage throughout the contract term, including any renewal periods. The bonding requirements apply to all contractors, including prime contractors and, where applicable, subcontractors below specified thresholds. Bond forms must comply with agency-approved formats and must be issued by sureties holding appropriate ratings and certifications. Failure to provide adequate bonding or maintain required coverage during contract performance may result in bid rejection, contract termination, or claims against existing bonds. The cost of bonds is typically borne by the contractor and should be incorporated into overall pricing.
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Appendix 7. Bonds Effective Date: July 2024
Appendix 7. Bonds
Below is a list of the types of Bonds that may be required for this solicitation and resulting contract. If required, it will be noted in the solicitation when to submit the requested Bond to the Procurement Officer.
7.1. Bid Bond
Refer to Section 5 of Appendix 11 - DGS Instructions to Bidders for Construction Projects
7.2. Performance Bond
Refer to Section 20 of Appendix 11 - DGS Instructions to Bidders for Construction Projects
7.3. Payment Bond
Refer to Section 20 of Appendix 11 - DGS Instructions to Bidders for Construction Projects
7.4. Acceptable security
Acceptable security shall be as described below, identified within and excerpted from COMAR 21.06.07.01:
Acceptable security for bid/proposal, performance, and payment bonds is limited to:
1) A bond in a form satisfactory to the State underwritten by a surety company authorized to do business in this State;
7.5. Surety Bond Assistance Program
Assistance in obtaining bid/proposal, performance and payment bonds may be available to qualifying small businesses through the Maryland Small Business Development Financing Authority (MSBDFA). MSBDFA can directly issue bid/proposal, performance or payment bonds up to $750,000. MSBDFA may also guarantee up to 90% of a surety's losses as a result of a Contractor’s breach of Contract; MSBDFA exposure on any bond guaranteed may not, however, exceed $900,000. Bonds issued directly by the program will remain in effect for the duration of the Contract, and those surety bonds that are guaranteed by the program will remain in effect for the duration of the surety’s exposure under the Contract. To be eligible for bonding assistance, a business must first be denied bonding by at least one surety on both the standard and specialty markets within ninety
(90) days of submitting a bonding application to MSBDFA. The applicant must employ fewer than 500 full-time employees or have gross sales of less than $50 million annually, have its principal place of business in Maryland or be a Maryland resident, must not subcontract more than 75 percent of the work, and the business or its principals must have a reputation of good moral character and financial responsibility. Finally, it must be demonstrated that the bonding or guarantee will have a measurable economic impact, through job creation and expansion of the state’s tax base. Applicants are required to work through their respective bonding agents in applying for assistance under the program. Questions regarding the bonding assistance program should be referred to:
Maryland Department of Commerce Maryland Small Business Development Financing Authority
MMG Ventures 826 E. Baltimore Street
Baltimore, Maryland 21202 Phone: (410) 333-4270 Fax: (410) 333-2552
| Below is a list of the types of Bonds that may be required for this solicitation and resulting contract. If required, it will be noted in the solicitation when to submit the requested Bond to the Procurement Officer. |
| 7.1. Bid Bond |
| 7.2. Performance Bond |
| 7.3. Payment Bond |
| 7.4. Acceptable security |
| 7.5. Surety Bond Assistance Program |
File details come from the government source that posted it. Updated .