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<br />EXHIBIT VIII-N <br /> <br />PERFORMANCE AND PAYMENT BONDING REQUIREMENTS <br /> <br />Sections 38-26-105 and 38-26-106, CRS 1973, as amended, shall apply to all grants that require the <br />contracting (or subcontracting) for construction or facility improvements. These sections require: <br /> <br />. A PAYMENT BOND ON THE PART OF THE CONTRACTOR FOR PAYMENT OF ALL <br />AMOUNTS LAWFULLY DUE WHEN THE CONTRACT PRICE IS FOR MORE THAN $50,000. <br />A "payment bond" is one executed in connection with a contractor to assure payment as required <br />by law of all persons supplying labor and material in the execution of the work provided for in the <br />contract. (Section 38-26-105). <br /> <br />. A PERFORMANCE BOND ON THE PART OF THE CONTRACTOR FOR NOT LESS THAN <br />ONE-HALF (%) OF THE TOTAL AMOUNT PAYABLE BY THE TERMS OF THE CONTRACT <br />WHEN THE CONTRACT PRICE IS FOR MORE THAN $50,000. A "performance bond" is one <br />executed in connection with a contract to secure fulfillment of all the contractor's obligations <br />under such contract. (Section 38-26-1 06). ALTHOUGH STATE STATUTE REQUIRES ONLY <br />A 50 PERCENT PERFORMANCE BOND, THE DEPARTMENT SUGGESTS ALL <br />PERFORMANCE BONDS BE IN PAYMENT OF 100 PERCENT OF THE CONTRACT PRICE. <br />The bonds shall be obtained from companies holding certificates of authority as acceptable <br />sureties. A certified or cashier's check or a bank money order may be accepted in lieu of a bond. <br /> <br />VlIl-N-1 <br /> <br />(Revised 5199) <br />