(a) Each person or entity bidding for a contract with the City for the construction, alteration, repair or reconstruction of any public improvement is required to file with its bid a bid bond in the amount of ten percent of the amount of the bid. Such bid bond shall be separate from any performance or payment bond tendered pursuant to subparagraphs (c) through (f) of this section;
(b) The bid bond provided pursuant to subparagraph (A) of this section shall be subject to payment to the City as follows:
(1) The return of the bid bond shall be conditioned upon the bidder entering into a proper contract in accordance with the bid, plans and specifications after the acceptance of the bid and notice of award of the contract.
If for any reason other than as authorized by section 9.31 of the Revised Code, the bidder fails to enter into the contract, the City may enter into a contract with the next lowest responsible and responsive bidder and the bidder and its surety shall be liable to the City for the difference between the amount of bidder's bid and the amount of the bid of the bidder being awarded the contract, or for a penal sum not to exceed ten percent (10%) of the amount of the bid, whichever is less.
(c) Within five (5) calendar days of the receipt of the Notice of Award of a contract the successful bidder shall provide to the City a Performance bond in the amount of the contract to indemnify the City against all damage suffered by failure to perform the contract according to its provision and in accordance with the plans, details, damages, and costs associated with the default or termination of the contractor or any corrective work not undertaken by the contractor.
(d) Within five (5) calendar days of the receipt of the Notice of Award of a contract the successful bidder shall provide to the City a Payment bond in the amount of the contract to pay all lawful claims of subcontractors, materialmen, and laborers for labor performed and material furnished in carrying forward, performing, or completing the contract and such undertaking shall be for the benefit of any subcontractor, material person or laborer having a just claim, as well as for the City. (Ord. 1993-38. Passed 6-2-93.)
(e) In lieu of separate bid, performance and payment bonds, the Deputy Service Director/Superintendent of Engineering may accept one bond satisfying each of these separate requirements, provided, however, that a separate penal sum must apply to the performance and payment bond provisions of such bond. (Ord. 2002-106. Passed 11-06-02)
(f) The contract shall submit with its Application for Final Payment pursuant to Section 115.02(c) a Maintenance bond in the amount of ten percent (10%) of the contract amount. Such bond shall be conditioned to guarantee all materials and workmanship furnished pursuant to the contract for a period of one year from the date referenced in the Certificate of Final Completion.
(g) The release of the Maintenance bond upon the expiration of one year shall not constitute or be deemed to be a release or waiver of any other claim or right which the City may have with respect to work performed by the contractor which is defective or does not conform to the contract documents. (Ord. 1993-38. Passed 6-2-93)