Payment_&_Performance_Bond.pdf

Revised 11/2021 Purchasing and Contracting

Bond No.

PAYMENT AND PERFORMANCE BOND

THE CITY OF SEATTLE

We, [Insert full legal name of Vendor / Contractor]

(“Principal”), and a corporation [Insert legal name of Surety and its state of incorporation] authorized to transact surety business in the State of Washington, (“Surety”), are held and firmly bound unto The City of Seattle (“City”), as Obligee, in an amount equal to the total compensation and expense reimbursement payable to Principal for satisfactory completion of Principal’s work under Contract No. between Principal and City, which total is initially Dollars ($ ), lawful money of the United States of America, for the payment of which sum Principal and Surety bind themselves, their heirs, legal representatives, successors and assigns, jointly and severally, firmly by these presents. Said contract (hereinafter referred to as "the Contract") is for and is made a part hereof by this reference. The Contract includes the original agreement as well as all documents attached thereto or made a part thereof and all addenda, amendments, change orders, and any other document modifying, adding to or deleting from said Contract any portion thereof.

This Bond is executed in accordance with the laws of the State of Washington and is subject to all provisions thereof and the Charter and ordinances of City insofar as they are not in conflict therewith, and is entered into for the use and benefit of City, and all laborers, mechanics, subcontractors, and materialmen, and all persons who supply such person or persons, or subcontractors, with provisions or supplies for the carrying on of the work covered by the Contract.

THE CONDITION OF THIS OBLIGATION is such that if Principal faithfully performs all the provisions of the Contract and pays all laborers, mechanics, and subcontractors and materialmen, and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work; and pays all other just debts incurred in the performance of such work (provided, however, that the conditions of this obligation shall not apply to any money loaned or advanced to any such contractor or subcontractor or other person in the performance of such work); and to the extent permitted by law indemnifies, defends, and holds City harmless from all cost and damage by reason of Principal’s default, then this obligation shall be null and void; otherwise it shall remain in full force and effect.

THE PARTIES FURTHER ACKNOWLEDGE AND AGREE AS FOLLOWS:

(1) Surety hereby consents to, and waives notice of, any alteration, change order, or other modification of the Contract and any extension of time made by City, except that any single or cumulative change order amounting to more than twenty-five percent (25%) of the penal sum of this bond shall require Surety's written consent.

(2) Surety recognizes that the Contract includes provisions for additions, deletions, and modifications to the work or Contract Time and the amounts payable to Principal (i.e., Vendor/Contractor). No such change or any combination thereof shall void or impair Surety's obligation hereunder.

(3) Whenever City has declared Principal (i.e., Vendor/Contractor) to be in default and City has given Surety written notice of such declaration, Surety shall promptly (in no event more than thirty [30] days following receipt of such notice) specify, in written notice to City, which of the following actions Surety intends to take to remedy such default, and thereafter shall:

(a) Remedy the default within fifteen (15) days after its notice to City; or

(b) Assume within fifteen (15) days following its notice to City, full responsibility for the completion of the Contract in accordance with all of its provisions, and become entitled to payment of the balance of the Contract sum as provided in the Contract; or

(c) Pay City upon completion of the Contract, in cash, the cost of completion together with all other reasonable costs and expenses incurred by City as a result of Principal’s (i.e.,Vendor/Contractor's) default, including but not limited to those incurred by City to mitigate its losses, which may include but are not limited to attorneys' fees and the cost of efforts to complete the work prior to Surety's exercising any option available to it under this Bond; or

(d) Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon a

6-5-2008 RCK Page 1 of 3 determination by City and Surety jointly of the lowest responsible bidder, arrange for one or more agreements between such bidder and City, and make available as work progresses (even though there is a default or a succession of defaults under such agreement(s) for completion arranged for under this paragraph) sufficient funds to pay the cost of completion of the Contract less the balance of the Contract price, but not exceeding, including other costs and damages for which Surety may be liable hereunder, the penal sum of this Bond. The term "balance of the Contract price," as used in this paragraph, shall mean the total amount payable by City to Principal (i.e., Vendor/Contractor) under the Contract, less the amount properly paid by City to Principal (i.e., Vendor/Contractor).

In addition to (a) through (d) above, Surety shall pay City all other reasonable costs and expenses incurred by City as a result of Principal’s (i.e. Vendor/Contractor’s) default, and prior to Surety’s exercising any option available to Surety under this bond.

(4) The venue for any action arising out of or in connection with this bond shall be in King County, Washington.

(5) No right or action shall accrue on this Bond to or for the use of any person or corporation other than The City of Seattle and, to the extent required under RCW Chapter 39, all laborers, mechanics, subcontractors, and materialmen, and all persons who supply such person or persons, or subcontractors, with provisions or supplies for the carrying on of the work covered by the Contract.

(6) Nothing of whatever kind or nature whatsoever that will not discharge the Principal shall operate as a discharge or a release of liability of the Surety, any law, rule of equity, or usage relating to the liability of sureties to the contrary notwithstanding.

(7) No rider, amendment, or other document modifies this Bond unless made in writing and accepted by Principal, Surety and the City.

(8) Surety shall give to Principal and to City not less than sixty (60) days’ prior written notice by certified mail, return receipt requested, of the effective date of the expiration or cancellation of this bond. Notice to City shall be mailed to: FAS, P. O.

Box 94669, Seattle, WA 98124-4669 or delivered to FAS at 700 5th Av., Ste. 4350, Seattle, WA98104-5008.

(9) Principal must provide City with a replacement bond, acceptable to City, not less than thirty (30) days before the effective date of this bond’s expiration or cancellation as specified in the Surety’s notice provided pursuant to Condition (8) above.

(10) If Principal fails to provide the replacement bond not less than thirty (30) days before the effective date of this bond’s expiration or cancellation as specified in the Surety’s notice provided pursuant to Condition (8) above, such failure shall constitute a default under this bond, for which City may make a claim, and Surety shall be obligated to make immediate payment under this bond of all sums.

SURETY’S QUALIFICATIONS: Every Surety named on this bond must either appear on the United States Treasury Department's most current list (Circular 570 as amended or superseded) or have a current rating of at least A-:VII in A. M. Best’s Key Rating Guide. Additionally, every Surety named on this bond must be authorized by the Washington State Insurance Commissioner to transact business as a surety in the State of Washington.

INSTRUCTIONS FOR SIGNATURES: This bond must be signed by the president or a vice-president of a corporation; the managing general partner of a partnership; managing joint venturer of a joint venture; manager of a limited liability company (“LLC”) or, if no manager has been designated, a member of such entity; a general partner of a limited liability partnership (“LLP”); or the owner(s) of a sole proprietorship. If the bond is signed by any other representative, the Principal must attach written proof of that signer’s authority to bind the Principal, identifying and quoting the provision in the corporate articles of incorporation, bylaws, Board resolution, partnership agreement, certificate of formation, power of attorney, or other document authorizing delegation of signature authority to such signer, and confirmation acceptable to the Seattle City Attorney’s Office that such delegation was in effect on the date the bond was signed.

A NOTARY PUBLIC MUST ACKNOWLEDGE EACH SIGNATURE ON THIS BOND.

6-5-2008 RCK Page 2 of 3

FOR THE SURETY: FOR THE PRINCIPAL:

By By: _ (Signature of Attorney-in-Fact) (Signature of authorized signer for Principal)

(Type or print name of Attorney-in-Fact) (Type or print NAME of signer for Principal)

(Type or print telephone number for Attorney-in-Fact) (Type or print TITLE of signer for Principal)

STATE OF )

) ss:

COUNTY OF )

ACKNOWLEDGMENT FOR PRINCIPAL

I certify that I know or have satisfactory evidence that is the person who appeared before me, said person acknowledged that he/she signed this bond, and on oath stated that he/she was authorized to execute the bond on behalf of the Principal as the Principal’s free and voluntary act for the uses and purposes mentioned therein.

WITNESS my hand and official seal hereto affixed this day of , .

(Signature of Notary Public) (Print or type name of Notary Public)

Notary Public in and for the state of residing at My commission expires . SEAL

STATE OF )

) ss:

COUNTY OF )

ACKNOWLEDGMENT FOR SURETY

I certify that I know or have satisfactory evidence that is the person who appeared before me a s the Attorney-in-Fact for the Surety that executed the foregoing bond, acknowledged said bond to be the free and voluntary act and deed of the Surety for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said bond on behalf of the Surety, and that the seal affixed on said bond or the annexed Power of Attorney is the corporate seal of said Surety.

WITNESS my hand and official seal hereto affixed this day of , .

(Signature of Notary Public) (Print or type name of Notary Public)

Notary Public in and for the state of residing at My commission expires . SEAL

6-5-2008 RCK Page 3 of 3

Accessibility Report

Filename:

fas-cpcs-contracting-payment-performance-bond_a11y_remediated_with_tooltips.pdf

Report created by:

Organization:

[Enter personal and organization information through the Preferences > Identity dialog.]

Summary

The checker found no problems in this document.

Needs manual check: 2

Passed manually: 0

Failed manually: 0

Skipped: 0

Passed: 30

Failed: 0

Detailed Report

Document

Rule Name Status Description

Accessibility permission flag Passed Accessibility permission flag must be set

Image-only PDF Passed Document is not image-only PDF

Tagged PDF Passed Document is tagged PDF

Logical Reading Order Needs manual check Document structure provides a logical reading order

Primary language Passed Text language is specified

Title Passed Document title is showing in title bar

Bookmarks Passed Bookmarks are present in large documents

Color contrast Needs manual check Document has appropriate color contrast

Page Content

Rule Name Status Description

Tagged content Passed All page content is tagged

Tagged annotations Passed All annotations are tagged

Tab order Passed Tab order is consistent with structure order

Character encoding Passed Reliable character encoding is provided

Tagged multimedia Passed All multimedia objects are tagged

Screen flicker Passed Page will not cause screen flicker

Scripts Passed No inaccessible scripts

Timed responses Passed Page does not require timed responses

Navigation links Passed Navigation links are not repetitive

Forms

Rule Name Status Description

Tagged form fields Passed All form fields are tagged

Field descriptions Passed All form fields have description

Alternate Text

Rule Name Status Description

Figures alternate text Passed Figures require alternate text

Nested alternate text Passed Alternate text that will never be read

Associated with content Passed Alternate text must be associated with some content

Hides annotation Passed Alternate text should not hide annotation

Other elements alternate text Passed Other elements that require alternate text

Tables

Rule Name Status Description

Rows Passed TR must be a child of Table, THead, TBody, or TFoot

TH and TD Passed TH and TD must be children of TR

Headers Passed Tables should have headers

Regularity Passed Tables must contain the same number of columns in each row and rows in each column

Summary Passed Tables must have a summary

Lists

Rule Name Status Description

List items Passed LI must be a child of L

Lbl and LBody Passed Lbl and LBody must be children of LI

Headings

Rule Name Status Description

Appropriate nesting Passed Appropriate nesting

Back to Top