Exhibit_M_-_Bonding_Requirements_24_CFR_PART_85.36.pdf

This is a bonding requirements exhibit document referenced in a federally-assisted construction contract opportunity issued by Volusia County's Office of Recovery and Resiliency on behalf of the City of New Smyrna Beach, Florida, and governed by 24 CFR Part 85.36 administrative requirements for grants and cooperative agreements. The project involves construction of stormwater improvements at Corbin Park as part of New Smyrna Beach's recovery efforts following Hurricane Ian damage in September 2022. The contract is funded through a U.S. Department of Housing and Urban Development Community Development Block Grant for Disaster Recovery and is subject to federal labor standards including the Davis-Bacon Act and Copeland Act requirements, with proof of bonding mandated prior to issuance of the notice to proceed.

For construction contracts exceeding the simplified acquisition threshold, bonding requirements are mandatory and include: a bid guarantee from each bidder equivalent to five percent of the bid price in the form of 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 to all persons supplying labor and materials. The prime contractor bears full responsibility for wage compliance enforcement under prevailing wage rates established by the Secretary of Labor, with potential liability for wage restitution, and must provide supporting documentation throughout the project duration. The project is also subject to Section 3 and M/WBE provisions as part of the federally-assisted funding structure.