Town_of_Manchester_Performance_Bond.pdf
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- Attached to
- ON-CALL CULVERT CLEANING AND INSPECTION
- Solicitation number
- 23/24-98
- Issued by
- Hartford County, Connecticut
About this file
This document is a Performance Bond for the Town of Manchester, Connecticut, related to the On-Call Culvert Cleaning and Inspection project (Bid No. 23/24-98). The performance bond serves as a legal instrument guaranteeing that the principal contractor will faithfully perform the contract and pay prevailing wages to workers. The bond provides financial protection for the Town, ensuring that if the principal defaults, the surety (bonding company) will either complete the contract or secure a new contractor to finish the work.
The performance bond establishes the financial liability of the principal and surety, which is limited to the total amount specified in the first paragraph of the document. Key provisions include the surety's obligation to remedy defaults by either completing the contract or arranging for a new contractor, with the surety making funds available to cover completion costs. The bond also stipulates that no right of action can accrue to any party other than the Town of Manchester or its successors, emphasizing the specific protective nature of this financial instrument for the municipal government's contracting process.
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Text version
PERFORMANCE BOND
Bond No.____________
KNOW ALL MEN BY THESE PRESENTS:
THAT ___________________________________________________________as Principal, Hereinafter called "PRINCIPAL," and _______________________________
________________________ as Surety, hereinafter called "SURETY," are held and firmly bound unto the Town of Manchester, Connecticut, as Obligee, hereinafter called "TOWN," in the amount of
Dollars, ($ ), for the payment whereof PRINCIPAL and SURETY bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, PRINCIPAL has by written Contract dated ______________________ entered into a Contract with TOWN for _____________________________________________________________ which Contract is by reference made a part hereof, and is hereinafter referred to as the
"CONTRACT."
NOW, THEREFORE, the condition of this obligation is such that, if PRINCIPAL shall promptly and faithfully perform said CONTRACT, and shall certify in writing that all wages paid under said
CONTRACT to any mechanic, laborer or workman were equal to the rates of wages customary or then prevailing for the same trade or occupation in the Town of Manchester, then this obligation shall be null and void, otherwise it shall remain in full force and effect.
Whenever PRINCIPAL shall be, and declared by the TOWN to be in default under the
CONTRACT, the TOWN having performed its obligations thereunder, the SURETY may promptly remedy the default, or shall promptly:
1. Complete the CONTRACT in accordance with its terms and conditions; or
2. Obtain a bid or bids for submission to the TOWN for completing the CONTRACT in accordance with its terms and conditions, and upon determination by the TOWN and SURETY of the lowest possible bidder, arrange for a CONTRACT between such bidder and the TOWN, and make available as work progresses (even though there should be a default or a succession of defaults under the CONTRACT or Contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the Contract Price; but not exceeding, including other costs and damages for which the SURETY may be liable hereunder, the amount set forth in the first paragraph hereof. The term, "Balance of the Contract Price," as used in this paragraph, shall mean the total amount payable by the TOWN to PRINCIPAL under the
CONTRACT and any amendments thereto, less the amount properly paid by the TOWN to the
PRINCIPAL.
No right of action shall accrue on this bond to or for the use of any person or corporation other than the
TOWN named herein or the heirs, executors, administrators or successors of TOWN.
Signed and sealed this ______________ day of ________________________, A.D., 20__.
In the Presence of:
(SEAL)
(PRINCIPAL)
By:
(SURETY)
By:
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