(a) Every contract involving an expenditure of the amount of forty thousand dollars ($40,000) or more for the performance of work and labor and for the installation of equipment upon any street, highway, bridge, building or other public improvement in which both labor and material are involved, shall be accompanied by a bond in the Ohio statutory form, in an amount not less than the bid price, of the contractor to the City, guaranteeing the performance of the contract according to its provisions and payment of all lawful claims of subcontractors, material suppliers and laborers for work performed or materials furnished in performing the contract, and indemnifying the City against damages suffered by failure to perform the contract. Such bond shall be for the benefit of any subcontractor, material supplier or laborer having a just claim as well as the City.
(b) The sureties on such bond or the bank on such performance bond security shall be approved by the Commissioner of Purchases and Supplies and the bond/security shall be filed with the Commissioner of Purchases and Supplies. Any surety on a submitted bond must be licensed by the superintendent of insurance to execute such a bond in the state of Ohio.
(c) In lieu of a surety bond, the contractor may provide the City with one of the following forms of security from a solvent bank: (a) Certified check, (b) Cashier's check, or (c) Irrevocable letter of credit.
(d) The bond requirements under this Section may be waived by the Commissioner of Purchases and Supplies for contracts awarded pursuant to Code Section 188.07, the Small Business Enterprise Sheltered Market Program.
(Ord. 288-90. Passed 3-13-90; Ord. 178-94. Passed 4-18-94; Ord. 852-03. Passed 11-25-03; Ord. 832-03. Passed 12-23-03; Ord. 239-23. Passed 5-30-23.)