Bid_Bond_Form.docx

This is a Bid Bond Form for the City of Palo Alto, California, establishing the required bid security instrument for the Electric Substation Equipment Painting project. The form establishes that contractors submitting bids must provide a bid bond equal to 10 percent of the maximum bid proposal amount, inclusive of additive and alternate bid items. The project involves surface preparation and protective coating services across seven electric substations within the city's distribution system, covering equipment from multiple manufacturers including transformers, circuit breakers, switchgear, steel structures, and associated components. A non-mandatory pre-bid meeting and site walk is scheduled for April 15, 2026, at 9:00 a.m. at the Colorado Substation; written questions must be submitted by April 17, 2026, at 1:00 p.m.; and electronic bids are due April 24, 2026, at 3:00 p.m. Work is anticipated to commence July 1, 2026, with completion required within 1,095 working days from the Notice to Proceed. The bid bond obligates the contractor and surety jointly and severally to honor the bid and execute all contract documents if awarded, with the surety waiving notice of contract modifications and agreeing to pay all costs and attorney fees should the owner pursue legal action on the bond.

The bid bond form specifies that the penalty amount shall not exceed the difference between the contractor's bid and any higher amount the city incurs to contract with another party for the same work. The contractor must enter into a contract and provide performance and payment surety bonds within 10 days of the Notice of Award, each in the amount of 100 percent of the contract sum. The surety must be duly admitted under California law and acceptable to the owner. The form permits time extensions of up to 60 calendar days without surety notice but requires surety consent for extensions beyond 60 days. The bond is conditioned on the contractor's compliance with all contract documents and specifications, with no changes to the contract terms relieving the surety of its obligations. Based on the engineering estimate, the Year 1 project cost is approximately $940,500, including $840,500 in painting costs and $100,000 in mobilization, with subsequent annual expenditures ranging from $274,000 to $327,000 over a four-year timeline.