Burton Construction, Inc. 10/30/2024

52 ARTICLE 5 BONDS AND INSURANCE 5.1 Performance Bond Contractor shall furnish a duly executed Performance Bond upon a form provided by the City within ten (10) calendar days following receipt of the Notice of Award. The Bond shall be executed by a licensed surety which is registered with the Washington State Insurance Commissioner and the surety’s name shall appear in the current Authorized Insurance Company List for the State of Washington published by the Office of the Insurance Commissioner and must be approved by the U.S. Department of Treasury as evidenced by a listing in the Federal Register. In addition, the surety must be rated “A-, FSC (6)” or higher by A.M. Best Rating Guide. The penal amount of the bond shall be in an amount equal to the amount stated in the Proposal Requirements and conditioned upon the faithful performance of the Contract by the Contractor. If the Surety on any Performance Bond furnished by Contractor is declared bankrupt or becomes insolvent, or its right to do business is terminated in the state of Washington, or it ceases to meet the requirements as stated above, Contractor shall within five days thereafter substitute another Bond and Surety. City reserves the right to approve or reject any substitute Bond and Surety. The Performance Bond will initially be in the penal sum equal to $2,000,000. In the event the parties agree to exercise to extend the Contract, or if the cumulative amount of Work issued and not yet completed and accepted exceeds such amount, the Contractor shall deliver a new Performance Bond or a rider as required by the City. For a Federally Funded Work Order, the Contractor may be required to submit an additional performance bond in accordance with the applicable Federal Contract Clauses. 5.2 Payment Bond Contractor shall also furnish a duly executed Payment Bond upon a form provided by the City, within ten (10) calendar days following receipt of the Notice of Award. The Bond shall be executed by a licensed surety which is registered with the Washington State Insurance Commissioner and the surety’s name shall appear in the current Authorized Insurance Company List in the State of Washington published by the Office of the Insurance Commissioner and must be approved by the U.S. Department of Treasury as evidenced by a listing in the Federal Register. In addition, the surety must be rated “A-, FSC (6)” or higher by A.M. Best Rating Guide. The penal amount of the bond shall be in the amount stated in the Proposal Requirements and conditioned upon the payment by the Contractor to all laborers, mechanics, Subcontractors, suppliers, and all persons who shall supply for the performance of the Work covered by this Contract. If the Surety on any Payment Bond furnished by Contractor is declared bankrupt or becomes insolvent, or its right to do business is terminated in the state of Washington, or it ceases to meet the requirements as stated above, Contractor shall within five days thereafter substitute another Bond and Surety. City reserves the right to approve or reject any substitute Bond and Surety.