LABOR_AND_MATERIALS_BOND.pdf

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Attached to
Tennis Court Resurfacing and Cabana Installation
Solicitation number
2026-0403
Issued by
Baldwin County, Alabama

About this file

This is a Labor and Materials Bond sample document applicable to state and local public works contracts in Alabama, specifically referenced for the City of Orange Beach's Tennis Court Resurfacing and Cabana Installation project. The bond template establishes a penal sum guarantee between a Principal (contractor), Surety (bonding company), and Obligee (City of Orange Beach) to ensure prompt payment to all labor, materials, and supplies vendors involved in the contract work. The bond covers the complete resurfacing of eight tennis courts using the Acrytech Acrylic Surface System and installation of four cabanas, with work completion required by August 7, 2026. A mandatory pre-bid meeting is scheduled for March 16, 2026 at 2:00 p.m. at City Hall, with bid submissions due April 2, 2026 at 11:30 a.m. through the City's eProcurement Portal. The contractor must demonstrate a minimum of ten years' experience in court construction and resurfacing with at least fifteen major court projects completed within the past five years, maintain American Sports Builders Association Certified Tennis Court Builder status, and possess an Alabama State General Contractor's License.

The bond is subject to specific conditions and limitations under Alabama law (Act of the Legislature approved February 8, 1935), including a one-year statute of limitations for claims against the bond following final contract settlement. Claimants may pursue direct action against both Principal and Surety in the county where work is performed or where either party conducts business. The Surety's liability is capped at the bond's penal sum and excludes damages recoverable under Workers' Compensation or Employer's Liability statutes. Performance and Labor and Materials Payment Bonds equal to 100% and 50% of the contract amount, respectively, are required for winning bids exceeding $50,000. All work must be completed with a one-year guarantee on labor, materials, and workmanship from final billing, and liquidated damages of $500 per calendar day apply for delays exceeding thirty days from Notice to Proceed. The contractor must maintain comprehensive insurance coverage including Commercial General Liability of at least $1,000,000 each occurrence and $2,000,000 annual aggregate, Business Automobile Liability of $1,000,000 each occurrence, Worker's Compensation as required by Alabama law, and Commercial Umbrella/Excess Liability of at least $1,000,000 each occurrence and aggregate.

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LABOR AND MATERIALS BOND (SAMPLE)

KNOW ALL MEN BY THESE PRESENTS, THAT WE ______________________________________________________________, as Principal, and _______________________________________________________________________________________, as Surety, are held and firmly bound unto said Owner, hereinafter called the Obligee, in the penal sum of

_______________________________________________________________________________ Dollars ($_____________________________) lawful money of the United States, for the payment of which sum and truly to be made, we bind ourselves, our heirs, personal representatives, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, the Principal has entered into a certain Contract with said Obligee dated _________________________________, hereinafter called the Contract, for _______________________________________________ and the specifications for said work shall be deemed a part hereof as fully as if set out herein.

NOW THEREFORE, the conditions of the obligation are such that if the Principal and all subcontractors to whom any portion of the work in said Contract is sublet and all assignees of said Principal and of such subcontractors shall promptly make payments to all persons supplying him or them with labor, materials, or supplies for or in the prosecution of the work provided for in such Contract, or any amendment or extension of or addition to said Contract, and for the payment of reasonable attorney’s fees incurred by the successful claimant or plaintiffs in suits or claims against the Contractor arising out of or in connection with the said Contract, then the above obligation shall be void; otherwise to remain in full force and effect.

PROVIDED, HOWEVER, that this bond is subject to the following conditions and limitations.

(a) Any person, firm or corporation that has furnished labor, materials, or supplies for or in the prosecution of the work provided for in said Contract shall have a direct right to action against the Principal and Surety on this bond, which right of action shall be asserted in a proceeding, instituted in the County in which the work provided for in said Contract is to be performed or in any County in which said Principal or Surety does business. Such right of action shall be asserted in a proceeding instituted in the name of the claimant or claimants for his or their use and benefit against the Principal and Surety or either of them, but not later than one (1) year after the final settlement of said Contract falls due, in which action such claim or claims shall be adjusted and judgement rendered thereon.

(b) The Principal and Surety hereby designate and appoint __________________________________________, or his successor or representative as the agent of each of them to receive and accept services of process or other pleading issued, or filed in any proceeding instituted on this bond and hereby consent that such service shall be the same as personal service on the Principal and/or Surety.

(c) The Surety shall not be liable hereunder for any damages or compensation recoverable under Workmen’s Compensation or Employer’s Liability Statute.

(d) In no event shall the Surety be liable for a greater sum than the penalty of this bond, or subject to any suit, action or proceeding thereon that is instituted later than one (1) year after the final settlement of said Contract.

(e) This bond is given pursuant to the terms of an Act of the Legislature of the State of Alabama approved February 8, 1935, entitled, “An Act to further provide for Bonds and Contractors on State and other public works and suits thereon.”

(f) The full name and residence of each individual party to the bond must be inserted in the first paragraph.

(g) If the Principal is a partnership, the full name of all partners must be inserted in the first paragraph which must recite that they are the partners composing the partnership (to be named) and all partners must execute the bond as individuals.

(h) The State of Incorporation of each corporate party to bond must be inserted in the first paragraph and the bond must be executed under the Corporate Seal of each party attested by its secretary or other appropriate officer.

(i) The date of the bond must not be prior to the date of the Contract.

SIGNED, SEALED, AND DELIVERED this __________ day of __________________________________.

Attest: (Corporate Principal Sign Here)

By: ____________________________________________________

Attest: (Surety Sign Here)

By: ____________________________________________________

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