Except for a purchase contract awarded in the amount of fifty thousand dollars ($50,000.00) or less, or where by reason of the nature of the purchase the Commissioner of Purchases and Supplies, with the approval of the Director of Finance, has determined that it is impracticable or unnecessary to require a bond, or for contracts anticipated to be under five hundred thousand dollars ($500,000.00) and of a type where MBEs or FBEs are determined to be underutilized at a statistically significant level, when the Commissioner of Purchases and Supplies, with the prior approval of both the Director of Finance and the Director of the Office of Equal Opportunity, based on standards promulgated by the directors to protect the City’s interests, has determined that to reduce or waive a bond requirement will enhance contract competition by making City contract awards equitably available to all qualified contractors and will benefit the City’s interests, the performance of contracts for the purchase of articles, commodities, supplies, materials or equipment, or services shall be secured by a bond with good and sufficient sureties, approved by the Director of Law, and in an amount equal to at least twenty-five percent (25%) of the contract price. Said bond shall be substantially in the following form:
FORM B
BOND
Know All Men by These Presents, That we, the undersigned _______________ as principal, and _______________ as surety, are hereby held and firmly bound unto the City of Cleveland in the penal sum of _______________ Dollars ($__________), for the payment of which well and truly to be made, we hereby jointly and severally bind ourselves, our heirs, executors, administrators, successors and assigns by these presents.
The conditions of this obligation are such that whereas the above named principal did, on the __________ day of __________, 20___, enter into the contract hereto attached with the City of Cleveland, to furnish and deliver to the City of Cleveland the goods, wares, merchandise or services mentioned therein, which said contract is made a part of this bond the same as if fully set forth herein:
Now, if the principal shall well and truly execute all and singular the stipulations by it to be executed in the aforesaid contract, and shall fully perform all and singular the terms, conditions, and requirements of the specifications and contract, and shall indemnify and save harmless the City of Cleveland from any and all suits and expense over and above the expense included in the contract price for royalties or infringements on patents that may be involved in the construction of the goods, wares and merchandise contracted for, or of any part thereof, and further shall indemnify and save harmless said City of Cleveland from all liens, charges, claims, demands, loss, costs and damages of every kind and nature whatsoever in the performing or completing of said contract, then this obligation shall be void, otherwise shall be and remain in full force and virtue of law, it being expressly understood and agreed that the liability of the surety for any and all claims hereunder shall in no event exceed the penal amount of this obligation as herein stated.
Provided that any forbearance on the part of the City of Cleveland toward the above named principal in respect to its neglect or failure to perform any or all of said agreements or obligations on its part to be performed under said contract, shall not in any manner operate to release or discharge the surety from its liability under this bond.
Witness our signatures this __________ day of __________, A.D. 20___
__________________________________________
__________________________________________
__________________________________________
Principal.
__________________________________________
__________________________________________
__________________________________________
Surety.
(Ord. No. 793-03. Passed 6-10-03, eff. 7-20-03)