Appendix 7 - Bonds.pdf
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- Solicitation number
- BPM059270
- Issued by
- Maryland
About this file
This is a bonds appendix document for the State of Maryland related to the Rooftop Unit Replacement (RTU) project at Western Correctional Institution. The appendix outlines bonding requirements that bidders and contractors must satisfy as part of contract performance. The document specifies the types of bonds required, including bid bonds to be submitted with proposals and performance and payment bonds to be executed upon contract award. The bonds serve as financial guarantees ensuring contractor compliance with contract terms, timely project completion, and payment of laborers and material suppliers.
The appendix establishes bonding percentages and conditions applicable to the RTU replacement project. Specific bond amounts are typically calculated as a percentage of the total contract value, with standard requirements for performance bonds and payment bonds set at levels consistent with Maryland state contracting practices. The document details the surety requirements, acceptable bonding companies, and procedures for bond submission and enforcement. Contractors must provide bonds from carriers authorized to do business in Maryland and meeting specified financial ratings to ensure contractor accountability throughout the project execution period.
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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 .