Exhibit_M_-_Bonding_Requirements_24_CFR_PART_85.36.pdf
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- Solicitation number
- 26-B-19KW
- Issued by
- Volusia County, Florida
About this file
This is an Exhibit M document outlining bonding requirements under 24 CFR Part 85.36, applicable to the City of Edgewater Canal Armoring Construction project in Volusia County, Florida, funded through HUD's Community Development Block Grant for Disaster Recovery (CDBG-DR) program. The bonding requirements mandate compliance for all construction or facility improvement contracts and subcontracts exceeding the simplified acquisition threshold. Proof of bonding must be verified prior to issuance of the notice to proceed. The document establishes that either the grantee's or sub-grantee's existing bonding policies may be accepted if the awarding agency determines its interests are adequately protected; otherwise, minimum federal bonding requirements apply.
The minimum bonding requirements specified include a bid guarantee from each bidder equivalent to five percent of the bid price, consisting of a firm commitment such as a bid bond, certified check, or other negotiable instrument submitted with the bid to assure bidder performance upon acceptance. Contractors must provide a performance bond for 100 percent of the contract price to secure fulfillment of all contractual obligations and a payment bond for 100 percent of the contract price to ensure payment to all persons supplying labor and materials in the project's execution. These bonding requirements are mandatory for the Edgewater canal stabilization and improvements project, which addresses recovery needs from Hurricane Ian damage sustained in September 2022.
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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 M
https://www.hud.gov/sites/documents/24CFR85-36PROC.PDF
File details come from the government source that posted it. Updated .