A. When Required; Amounts: When a construction agreement is awarded, the following bonds or security shall be delivered to the City and shall become binding on the parties upon the execution of the agreement:
1. A performance bond satisfactory to the City, executed by a surety company authorized to do business in the State of Utah or otherwise secured in a manner satisfactory to the City, in an amount equal to one hundred percent (100%) of the price specified in the agreement; and
2. A payment bond satisfactory to the City, executed by a surety company authorized to do business in the State or otherwise secured in manner satisfactory to the City, for the protection of all persons supplying labor and material to the contractor or its subcontractor for the performance of the work provided for in the agreement. The bond shall be in an amount equal to one hundred percent (100%) of the price specified in the agreement.
B. Authority To Require Additional Bonds: Nothing in this section shall be construed to limit the authority of the City to require a performance bond or other security in addition to those bonds, or in circumstances other than specified in subsection A of this section.
C. Suits On Payment Bonds; Right To Institute: Unless otherwise authorized by law, any person who has furnished labor or material to the contractor or subcontractor for the work provided in the agreement, for which a payment bond is furnished under this section, and who has not been paid in full within ninety (90) days from the date on which that person performed the last of the labor or supplied the material, shall have the right to sue on the payment bond for any amount unpaid at the time the suit is instituted and to prosecute the action for the amount due that person. However, any person having an agreement with a subcontractor of the contractor, but no express or implied agreement with the contractor furnishing the payment bond, shall have the right of action upon payment bond upon giving written notice to the contractor within ninety (90) days from the date on which that person performed the last of the labor or supplied the material. That person shall state in the notice the amount claimed and the name of the party to whom the material was supplied or for whom the labor was performed. The notice shall be served personally or by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business.
D. Suits On Payment Bonds; Where And When Brought: Unless otherwise authorized by law, every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction for the county or district in which the construction agreement was to be performed. (Ord. 17-14)