(1) When Required Amounts. When a construction contract is awarded in excess of $25,000 the following bonds or security shall be delivered to the County and shall become binding on the parties upon the execution of the contract:
(a) A performance bond satisfactory to the County, executed by a surety company authorized to do business in this State or otherwise secured in a manner satisfactory to the County, in an amount equal to 100% of the price specified in the contract; and
(b) A payment bond satisfactory to the County, executed by a surety company authorized to do business in this State or otherwise secured in a manner satisfactory to the County, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100% of the price specified in the contract.
(2) Reduction of Bond Amounts. The Procurement Director is authorized to reduce the amount of performance and payment bonds to 50% of the contract price for each bond, when it has been determined in writing such reduction is necessary or warranted and is in the best interests of the County to do so.
(3) Authority to Require Additional Bonds. Nothing in this Section shall be construed to limit the authority of the County to require a performance bond or other security in addition to those bonds, or in circumstances other than specified in Subsection 1 of this Section.
(Ord. 3704, passed 6-17-2003; Ord. 5051, passed 1-22-2019)