Exhibit_L_-_Bonding_Requirements_24_CFR_PART_85.36_(3).pdf
PDF 1 MB Posted
- Attached to
- CDBG-DR Palmetto House Roof - Construction
- Solicitation number
- 26-B-118KW
- Issued by
- Volusia County, Florida
About this file
This document is an exhibit detailing bonding requirements established under 24 CFR Part 85.36 for grants and cooperative agreements administered to state, local, and federally recognized Indian tribal governments, applicable to the Volusia County Office of Recovery and Resiliency's CDBG-DR Palmetto House Roof Replacement project in Florida. The bonding requirements are mandatory for construction or facility improvement contracts and subcontracts exceeding the simplified acquisition threshold, with proof of bonding required prior to issuance of the notice to proceed. The bonding policy may be accepted from the grantee or sub-grantee if the awarding agency determines that its interest is adequately protected; otherwise, minimum bonding requirements apply as specified in the regulation.
Minimum bonding requirements include a bid guarantee from each bidder equivalent to five percent of the bid price in the form of a firm commitment such as a bid bond, certified check, or other negotiable instrument; a performance bond from the contractor for 100 percent of the contract price to secure fulfillment of all contractual obligations; and a payment bond from the contractor for 100 percent of the contract price to assure payment of all persons supplying labor and materials for the work. These bonding requirements are established under federal regulations governing HUD-funded projects and are intended to protect the awarding agency's financial interests throughout the construction process.
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Text version
24 CFR PART 85.36 Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments
Compliance with the following bonding requirements is mandatory.
Proof of bonding will be verified prior to issuance of the notice to proceed.
(h) Bonding requirements.
For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency may accept the bonding policy and requirements of the grantee or sub grantee provided the awarding agency has made a determination that the awarding agency's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
EXHIBIT L
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
File details come from the government source that posted it. Updated .