§ 4.20.030. Contract performance and payment bonds.

A.

When Required—Amounts. When a construction contract is awarded in excess of one hundred thousand dollars, the following bonds or security shall be delivered to the metropolitan government and shall become binding on the parties upon the execution of the contract:

1.

A performance bond satisfactory to the metropolitan government, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the metropolitan government, in an amount equal to one hundred percent of the price specified in the contract; and

2.

A payment bond satisfactory to the metropolitan government, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the metropolitan government 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 one hundred percent of the price specified in the contract.

B.

Reduction of Bond Amounts. The standards board may promulgate regulations that authorize the purchasing agent to reduce the amount of performance and payment bonds to fifty percent of the contract price for each bond.

C.

Authority to Require Additional Bonds. Nothing in this section shall be construed to limit the authority of the metropolitan government 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.

(Ord. BL2009-482 § 1, 2009; Ord. 92-210 § 1 (5-202), 1992)