Laserfiche WebLink
<br />00021; <br /> <br />( , <br /> <br />, \ <br />A'I'CHMENT B <br />Circular No. A-I02 <br /> <br />UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS-IN-AID <br />TO STATE AND LOCAL GOVERNMENTS <br /> <br />BONDING AND INSURANCE <br /> <br />1. Except for situations described in 2. and 3., below, <br />Federal grantor agencies shall not impose bonding and <br />insurance requirements, including fidelity bonds, over and <br />above those normally required by the State or local units of <br />government. <br /> <br />2. A State or local unit of government receiving a grant <br />from the Federal Government which requires contracting for <br />construction or facility improvement shall follow its own <br />requirements relating to bid guarantees, performance bonds, <br />and payment bonds except for contracts exceeding $100,000. <br />For contracts exceeding $100,000, the minimum requirements <br />shall be as follows: <br /> <br />a. A bid quarantee from each bidder equivalent to five <br />percent of the bid price. The "bid guarantee" shall consist <br />of a firm commitment such as a bid bond, certified check, or <br />other negotiable instrument accompanying a bid as assurance <br />that the bidder will, upon acceptance of his bid, execute <br />such contractual documents as may be required within the time <br />specified. <br /> <br />b. A performance bond on the part of the contractor for <br />100 percent of the contract price. A "performance bond" is <br />one executed in connection with a contract to secure fulfill- <br />ment of all the contractor's obligations under such contract. <br /> <br />c. A payment bond on the part of the contractor for 100 <br />percent of the contract price. A "payment bond" is one exe- <br />cuted in connection with a contract to assure payment as <br />required by law of all persons supplying labor and material <br />in the execution of the work provided for in the contract. <br />