Bid_Bond_Form.docx

This is a Bid Bond Form for the City of Palo Alto's Electric Substation Equipment Painting project. The bid bond serves as security guaranteeing that the selected contractor will honor its bid and execute all contract documents if awarded. The bond amount equals ten percent of the maximum aggregate bid amount, including any additive or alternate bid items. The contractor must enter into a contract with the City within ten days of the Notice of Award and provide performance and payment surety bonds, each in the amount of 100 percent of the contract sum, within ten business days of award. If the contractor fails to execute the contract, the surety is obligated to pay the City the difference, not to exceed the bond amount, between the contractor's bid and any higher amount the City must pay to contract with another party to perform the work. 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 are due by April 17, 2026, at 1:00 p.m.; and electronic bids are due April 24, 2026, at 3:00 p.m. through the City's OpenGov procurement portal. Work is anticipated to commence July 1, 2026, with a completion deadline of 1,095 working days from the Notice to Proceed.

The bid bond form requires that the surety be a duly admitted surety insurer under California law and waives various notice requirements regarding changes to contract terms, drawings, specifications, or other contract documents. The surety waives notice of time extensions up to sixty calendar days after contract award but requires the City's and contractor's consent for extensions beyond sixty days. The form stipulates that the surety is responsible for all costs, expenses, and fees incurred by the City in any suit or proceeding brought upon the bond, including attorney's fees. The form incorporates statutory bond requirements under California law and is construed as a statutory bond rather than a common law bond. Based on the engineering estimate, Year 1 painting costs are estimated at approximately $840,500 across the seven substations, plus $100,000 in mobilization costs, for a Year 1 total of approximately $940,500, with subsequent years showing reduced annual expenditures ranging from $274,000 to $327,000 over a four-year project timeline.