Item 4 - PH/Pub.Contract.Code - Laserfiche WebLink

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(2) Bid Security. Except as otherwise exempted, the solicitations for all contracts that include the construction of a public improvement and for which the estimated contract price will exceed $75,000 shall require bid security. (3) Performance Bonds. (a) General. Except as provided in sections 2.1400 to 2.1450 of this code, all public contracts are exempt from the requirement for the furnishing of a performance bond. (b) Contracts involvinq public improvements. Prior to executing a contract for more than $50,000 that includes the construction of a public improvement, the contractor must deliver a performance bond in an amount equal to the full contract price conditioned on the faithful performance of the contract in accordance with the plans, specifications and conditions of the contract. The performance bond must be solely for the protection of the city and any public agency that is providing funding for the project for which the contract was awarded. (c) Cash-in-lieu. The purchasing agent may permit the successful offeror to submit a cashier's check or certified check in lieu of all or a portion of the required performance bond. (4) Payment Bonds. (a) General. Except as provided in sections 2.1400 to 2.1450 of this code, all public contracts are exempt from the requirement for the furnishing of a payment bond. (b) Contracts involvinq public improvements. Prior to executing a contract for more than $50,000 that includes the construction of a public improvement, the contractor must deliver a payment bond equal to the full contract price, solely for the protection of claimants under ORS 279C.600. (5) Design/Build Contracts. If the public improvement contract is with a single person to provide both design and construction of a public improvement, the obligation of the performance bond for the faithful performance of the contract must also be for the preparation and completion of the design and related services covered under the contract. Notwithstanding when a cause of action, claim or demand accrues or arises, the surety is not liable after final completion of the contract, or longer if provided for in the contract, for damages of any nature, economic or otherwise and including corrective work, attributable to the design aspect of a design-build project, or for the costs of design revisions needed to implement corrective work. (6) Construction Manager/General Contractor Contracts. If the public improvement contract is with a single person to provide construction manager and general contractor services, in which a guaranteed maximum price may be established by an amendment authorizing construction period services following preconstruction period services, the contractor shall provide the bonds required by subsection (1) of this section upon execution of an amendment establishing the guaranteed maximum price. The city shall also require the contractor to provide Ordinance- ]2 L:\CMO~005 Council Agendas\M050214\S0502144-attA.doc