Performance_&_Paymt_Bond.doc

PUBLIC CONSTRUCTION COMBINED

PERFORMANCE AND PAYMENT BOND

Bond No. (enter bond number) .

BY THIS BOND, we _____________________, a __________________ corporation, as the Principal and ______________________, a _________________ corporation, as the Surety, are bound to Clay County, a political subdivision of the State of Florida, and its Board of County Commissioners, herein called the Owner, in the sum of $____________________ U.S., for performance, and the separate additional sum of $____________________ U.S., for payment, for the payment of each of which we bind ourselves, our heirs, personal representatives, successors and assigns, jointly and severally.

The names, principal addresses and telephone numbers of the Principal (who is also the contractor within the meaning of Section 255.05, Florida Statutes), the Surety and the Owner are:

Principal

Surety

Owner

Clay County, Florida

Post Office Box 1366

Green Cove Springs

Florida 32043

Phone: _____________

Phone: _____________

Phone: 904-269-6376

The contract that is the subject of this bond, herein called the Contract, has been entered into between the Principal and the Owner, and is for [insert project name] . The Contract has been designated by the Owner as “Clay County Agreement/Contract No. ___” and is dated as of ____________. Improvements to be made under the Contract are those outlined in the Contract which include but are not limited to [insert brief description of project] . The property upon which the improvements are to be made under the Contract is located [insert description of property sufficient to identify it, such as legal description or street address] .

THE CONDITION OF THIS BOND is that if the Principal:

1.

Performs the Contract dated as of ________________, between the Principal and the Owner for [insert project name] , the Contract being made a part of this bond by reference, and all of the terms and provisions of the Contract being incorporated in this bond by reference, at the times and in the manner prescribed in the Contract; and, 2.

Promptly makes payments to all claimants, as defined in Section 255.05(1), Florida Statutes, supplying the Principal with labor, materials, or supplies, used directly or indirectly by the Principal in the prosecution of the work provided for in the Contract; and, 3.

Pays the Owner all losses, damages, expenses, costs, and attorney’s fees, including costs and attorney’s fees incurred in any appellate proceedings, that the Owner may sustain because of default by the Principal under the Contract; and, 4.

Performs the guarantee of all work, materials and warranties furnished under the Contract for the time specified in the Contract;

THEN this bond is void; otherwise it remains in full force and effect.

Any action instituted by a claimant under this bond for payment or recovery of retainage must be in accordance with the notice and time limitation provisions in subsections (2) and (10) of Section 255.05, Florida Statutes.

This bond is to be deemed a statutory bond under Section 255.05, Florida Statutes, the provisions of which are hereby incorporated by reference and made a part hereof.

All interested parties are specifically directed to the following provisions regarding time and notice limitations as set out in paragraph (a) of Section 255.05(2), Florida Statutes, the Principal being the “contractor” as referred to in said provisions:

1.

If a claimant is no longer furnishing labor, services, or materials on a project, a contractor or the contractor’s agent or attorney may elect to shorten the time within which an action to enforce any claim against a payment bond must be commenced by recording in the clerk’s office a notice in substantially the following form:

NOTICE OF CONTEST OF CLAIM

AGAINST PAYMENT BOND

To: (Name and address of claimant) .

You are notified that the undersigned contests your notice of nonpayment, dated ______, ______, and served on the undersigned on ______, ______, and that the time within which you may file suit to enforce your claim is limited to 60 days after the date of service of this notice.

DATED on ______, ______.

Signed: (Contractor or Attorney) .

The claim of a claimant upon whom such notice is served and who fails to institute a suit to enforce his or her claim against the payment bond within 60 days after service of such notice shall be extinguished automatically. The contractor or the contractor’s attorney shall serve a copy of the notice of contest to the claimant at the address shown in the notice of nonpayment or most recent amendment thereto and shall certify to such service on the face of the notice and record the notice.

2.

A claimant, except a laborer, who is not in privity with the contractor shall, before commencing or not later than 45 days after commencing to furnish labor, services, or materials for the prosecution of the work, furnish the contractor with a written notice that he or she intends to look to the bond for protection. A claimant who is not in privity with the contractor and who has not received payment for his or her labor, services, or materials shall deliver to the contractor and to the surety written notice of the performance of the labor or delivery of the materials or supplies and of the nonpayment. The notice of nonpayment shall be served during the progress of the work or thereafter but may not be served earlier than 45 days after the first furnishing of labor, services, or materials or later than 90 days after the final furnishing of the labor, services or materials by the claimant or, with respect to rental equipment, not later than 90 days after the date that the rental equipment was last on the job site available for use. Any notice of nonpayment served by a claimant who is not in privity with the contractor which includes sums for retainage must specify the portion of the amount claimed for retainage. An action for the labor, materials, or supplies may not be instituted against the contractor or the surety unless the notice to the contractor and notice of nonpayment have been served, if required by this section. Notices required or permitted under this section shall be served in accordance with s. 713.18. A claimant may not waive in advance his or her right to bring an action under the bond against the surety. In any action brought to enforce a claim against a payment bond under this section, the prevailing party is entitled to recover a reasonable fee for the services of his or her attorney for trial and appeal or for arbitration, in an amount to be determined by the court, which fee must be taxed as part of the prevailing party’s costs, as allowed in equitable actions. The time periods for service of a notice of nonpayment or for bringing an action against a contractor or surety shall be measured from the last day of furnishing labor, services, or materials by the claimant and may not be measured by other standards, such as the issuance of a certificate of occupancy or the issuance of a certificate of substantial completion.

Any changes in or under the Contract Documents referred to in the Contract and compliance or noncompliance with any formalities connected with the Contract or the changes does not affect the Surety’s obligation under this bond.

By its execution of this bond the Surety expressly acknowledges that the Contract has been incorporated by reference herein, that all provisions of the Contract, including but not limited to any amendments thereto, apply fully to and are binding upon the Surety as if fully set forth in this bond, that the Surety guarantees the full and faithful performance by the Principal of all of the Principal’s work, materials, covenants, obligations, promises, guarantees and warranties set forth in and otherwise arising under the Contract such that the Surety’s obligations are co-extensive with those of the Principal under the Contract, and that said performance shall occur within the times specified in the Contract.

DATED ON ___________________.

Principal:

__________________, a ____________ corporation

By: __________________________________

[insert name] .

Its ________ President

Surety:

_____________________, a ____________ corporation

By: __________________________________

[insert name] .

Its Attorney-in-Fact

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