Payment_Bond.docx
DOCX document 27 KB Posted
- Attached to
- Gas Main Replacement Project 25
- Solicitation number
- IFB194217
- Issued by
- Santa Clara County, California
About this file
This is a Contractor's Payment Surety Bond template issued by the City of Palo Alto, California for the Gas Main Replacement Project 25. The bond serves as a financial security instrument required from the principal contractor before commencing work on public improvements. The bond secures payment claims for all laborers, material suppliers, and subcontractors involved in the project as outlined in California Civil Code Titles 1 and 3 (commencing with Section 8000) of Part 6 of Division 4. The document establishes that the surety company, incorporated and authorized to conduct business in California, binds itself jointly and severally with the principal contractor to ensure all payment obligations are met. The bond amount must equal no less than 100 percent of the total contract amount per California Civil Code Section 9554, and the surety agrees to pay any deficiencies including reasonable attorney's fees if litigation becomes necessary.
The bond protects all persons, companies, and corporations entitled under California Civil Code Section 9100, including workers, material suppliers, and subcontractors. The surety waives notice of any amendments, changes, change orders, or modifications to the underlying agreement and expressly waives the provisions of California Civil Code Sections 2845 and 2849, indicating an unconditional commitment regardless of subsequent contract modifications. The instrument requires execution by both the surety and principal contractor with notarization by a California notary public, and includes a certificate of acknowledgment verifying only the identity of signatories rather than the validity or accuracy of the underlying agreement. No specific bond amount is pre-filled in this template, as the amount will be determined based on the final contract value for the gas main replacement project.
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Text version
CONTRACTOR’S PAYMENT SURETY BOND
WHEREAS, the City Council of the City of Palo Alto, State of California (“City”) and , (“Principal”), have entered into an agreement dated , and identified as (“Agreement”), which is hereby referred to and made a part here of, whereby Principal agrees to install and complete certain designated public improvements; and
WHEREAS, under the terms of said agreement, Principal is required before entering upon the performance of the work to file a good and sufficient payment surety bond with City to secure the claims to which reference is made in Titles 1 and 3 (commencing with Section 8000) of Part 6 of Division 4 of the Civil Code of the State of California.
NOW, THEREFORE, Principal and ________________________________________________, as Surety, incorporated under the laws of the State of _______________________________, and duly authorized to transact business as an admitted surety, under the Laws of the State of California, are held and firmly bound unto City in the penal sum of dollars ($ ), this amount being not less than one hundred percent of the total amount payable by the terms of the Agreement per Civil Code section 9554, for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
The condition of this obligation is such that if Principal, Principal’s subcontractors, heirs, executors, administrators, successors, or assigns shall fail to pay any of the persons, companies, or corporations, referred to in Section 9100 of the California Civil Code, as amended, with respect to any work of labor performed or materials supplied by any such persons, companies, or corporations, which work, labor, or materials are covered by the above-mentioned agreement and any amendments, changes, change order, additions, alterations, or modifications thereof, or any amounts due under the California Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Principal and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, as amended, with respect to such work and labor, the Surety will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, the Surety will pay reasonable attorney’s fees in an amount to be fixed by the court.
It is hereby expressly stipulated and agreed that this surety bond shall inure to the benefit of any and all persons, companies, and corporations entitled named in Section 9100 of the California Civil Code, as amended, so as to give a right of action to them or their assigns in any suit brought upon this surety bond.
The Surety hereby stipulates and agrees that no amendment, change, change order, addition, alteration, or modification to the terms of the agreement of the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this surety bond, and it does hereby waive notice of any such amendment, change, change order, addition, alteration, or modification to the terms of the agreement or to the work performed thereunder or to the specifications accompanying the same. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849.
IN WITNESS WHEREOF, this instrument has been duly executed by the Surety and Principal above named on ______________, 20___.
__ Phone Number: ______________ Name of Surety
Signature of Surety
| By: | Its: |
| Typed or Printed Name | Title |
Name of Contractor/Principal
Signature of Contractor/Principal
| By: | Its: |
| Typed or Printed Name | Title |
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
| STATE OF | ) |
| COUNTY OF | ) |
| On | , before me, | , a notary public in and for said County, personally appeared | , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. |
| I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. |
WITNESS my hand and official seal.
(Seal)
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