(a) The contractor shall guarantee all materials and workmanship furnished and used in the improvement for a period of at least sixty days, or such longer period as may be specified in the contract documents, after approval of the final estimate by the Village Engineer. During such time, the Village shall retain an amount equal to four percent of the total contract price as a guaranty on the part of the contractor that the work will remain in good and sound condition during the sixty-day period or such longer period as may be specified in the contract. Such retainage shall be held exclusively by the Village and no escrow account will be authorized or required.
(b) Upon expiration of the guaranty period, provided that all the work is at that time in good order and that all obligations of the contractor including the provision of the Maintenance Bond set forth in the next paragraph are fulfilled, the Village shall pay the contractor such part of the retained sum as may remain after the expense of any repairs or replacements has been paid therefrom. The acceptance by the contractor of such final payment shall constitute a full release to the Village and all its officers and agents, from all claims of, and liability to, the contractor for any reason whatsoever.
(c) The contractor shall provide a Maintenance Bond for the project, in an amount equal to 10% of the final contract price, which shall be effective for a period of 2 years after the expiration of the guarantee period and acceptance by the contractor of final payment. The bond and surety shall be approved by the Village Engineer and the Law Director
(Ord. 2006-4-31. Passed 4-5-06.)