2-92-030 Contractors' bonds – Required when – Conditions.
   Whenever any public work, construction or improvement is let by contract involving the expenditure of more than $100,000.00, unless the city council approves the letting of the contract without bond, the chief procurement officer shall take a bond, with good and sufficient sureties, in such amount as shall be adequate not only to insure the performance of the work in the time and manner required in such contract, but also to save, indemnify, and keep harmless the city against all liabilities, judgments, costs, and expenses which may in any way accrue against the city in consequence of the granting of the contract, or which may in any way result from the carelessness or neglect of the person to whom the contract is let, or his agents, employees or workmen, in any respect whatever. It shall be so conditioned also, that when any judgment shall be recovered against the city by reason of the carelessness or negligence of such person so contracting, or his agents, employees, or workmen, and when due notice of the pendency of such suit has been given by the city to such person, such judgment shall be conclusive against such person and his sureties on such bond, not only as to the amount of damages, but also as to their liability. It shall be conditioned further to provide for the payment of all claims and demands whatsoever which may accrue to each and every person who shall be employed by such contractor, or any assignee or subcontractor of such contractor in or about the performance of such contractor.
   It shall be conditioned, also, for the payment of all claims and demands whatsoever which may accrue to each and every such person so employed or to the beneficiaries of any such person, under the laws of the state relating to compensation to workmen for accidental injuries or death, and said bond shall contain a provision that the contractor shall insure his liability to pay the compensation and shall pay all claims and demands for compensation for accidental injuries or death under the provisions of the Workers' Compensation Act, codified at 820 ILCS 305/1, et seq., as amended, and also that when any judgment or award of any board of arbitrators shall be rendered against the city in any suit or claim arising under the aforementioned act, such judgment or award shall be conclusive against such person and his sureties on such bond, not only as to the amount of damages, but as to their liability.
   For those contracts involving the expenditure of more than $100,000.00 where a bond is required pursuant to this section, the bond shall be for a sum no less than the greater of $100,000.00 or ten percent of the total amount which the city is obliged to pay under such contract.
(Prior code § 26-3; Amend Coun. J. 7-31-90, p. 19312; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 11-1-06, p. 89853, § 1)