(A) Performance bonds. When a construction contract is awarded pursuant to this section, labor, material and performance payment bonds may be required at the option of the Bids and Purchases Committee and in all cases where the contract price exceeds the sum of $25,000. These bonds, in such instances, shall be written by an acceptable surety company licensed in the state and meet the requirements under S.C. Code Title 34, Chapter 43.
(1) Amount of bonds. Bonds shall guarantee the selected bidders performance. The successful bidder shall provide bonds in accordance with the contract in an equal to or greater than 100% for contracts of $25,000 or greater. For contracts in excess of $ 10,000, but less than $25,000, excluding emergency contracts, the amount of bonds may be reduced to a lesser amount at the option of the Bids and Purchases Committee.
(2) Duration of bonds. All contract bonds shall be for a time period of not less than one year from the date of the final payment.
(3) Bond alternates. In lieu of corporate surety, material, labor and performance payment bonds, the successful bidder may request to post cash or certified funds with the town in such amounts as may be agreed upon by the Bids and Purchases Committee, and such funds shall be held in accordance with the written terms as agreed upon between the town and the successful bidder. Prior to approval of such a request for bond alternate, a determination in writing must be made to the Town Clerk as to why the request should be granted, the overall project risk and the responsibility of the offeror which has requested such an alternate or any other factors which may weigh heavily on granting such an approval.
(4) Suits on payment bonds; right to institute. Every person who has furnished labor or material to the contractor or its subcontractors for the work specified in the contract, in respect of which a payment bond is furnished under this section, and who has not been paid in full before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by such a person or material was furnished or supplied by such person for which such claim is made, shall have the right to sue on the payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute such action for the sum or sums justly due such person. Any person having a direct contractual relationship with a subcontractor of the contractor, but no contractual relationship expressed or implied with the contractor furnishing such payment bond, shall have a right of action on the payment bond upon giving written notice to the contractor within 90 days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material upon which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such written notice to the contractor shall be personally served or served by mailing the same by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts its business.
(5) Suits on payment bonds; where and when bought. Every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction for the county or circuit in which the construction contract was to be performed, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in any such suit.
(B) Certified copies of bonds. Any person may request in writing and obtain from the town a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of a bond shall be prima facie evidence of the contents, execution and delivery of the original.
(Ord. 001-3, passed 3-1-2001)