09 - Pump Track Construction Contract with American Ramp Company

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G. Performance, Payment and Maintenance Bonds The CONTRACTOR shall procure and pay for performance and payment bonds applicable to the work in the amount of the total bid price. The CONTRACTOR shall also procure and pay for a maintenance bond applicable to the work in the amount of fifteen percent (15%) of the total bid price. The period of the Maintenance Bond shall be two years from the date of acceptance of all work done under the contract, to cover the guarantee as set forth in the Special Conditions. The performance, payment and maintenance bonds shall be issued in the form attached to this Construction Agreement as Exhibits C and D. Other performance, payment and maintenance bond forms shall not be accepted. Among other things, these bonds shall apply to any work performed during the two-year warranty period after acceptance as described in this Construction Agreement. The performance, payment and maintenance bonds shall be issued by a corporate surety, acceptable to and approved by the City, authorized to do business in the State of Texas, pursuant to Chapter 2253 of the Texas Government Code. Further, the CONTRACTOR shall supply capital and surplus information concerning the surety and reinsurance information concerning the performance, payment and maintenance bonds upon City request. In addition to the foregoing requirements, if the amount of the bond exceeds One Hundred Thousand Dollars ($100,000), the bond must be issued by a surety that is qualified as a surety on obligations permitted or required under federal law as indicated by publication of the surety's name in the current U.S. Treasury Department Circular 570. In the alternative, an otherwise acceptable surety company (not qualified on federal obligations) that is authorized and admitted to write surety bonds in Texas must obtain reinsurance on any amounts in excess of One Hundred Thousand Dollars ($100,000) from a reinsurer that is authorized and admitted as a reinsurer in Texas who also qualifies as a surety or reinsurer on federal obligations as indicated by publication of the surety's or reinsurer's name in the current U.S. Treasury Department Circular 570. H. Progress Payments and Retainage As it completes portions of the Work, the CONTRACTOR may request progress payments from the OWNER. Progress payments shall be made by the OWNER based on the following schedule, provided all work is progressing as provided in this agreement and in accordance with the schedule of work. 25% Upon Mobilization 25% Two Weeks after the Start of Construction 40% Within 10 Days of Completion 10% Release of Retainage upon Final Acceptance of work by City Council No progress payment shall be due to the CONTRACTOR until the CONTRACTOR furnishes to the OWNER: 1. copies of documents reasonably necessary to aid the OWNER in preparing an estimate of the value of Work properly completed;