§ 2-354. Contract performance and payment bonds.

(a)

Bond and insurance requirements. All bonds must meet the requirements of O.C.G.A. § 36-82-102, and must be with sureties appearing on the U.S. Treasury Department's latest Circular 570.

(1)

Public road projects contracts over $5,000.00 require performance bond and payment bond as well as public liability and property damage insurance bonds or policies, and bonds to maintain in good condition; such completed construction for a period of not less than five years, pursuant to O.C.G.A. § 32-4-119. The amount of insurance depends on the size of the project.

(2)

Public works contracts over $40,000.00 must provide a bid bond, performance bond, and payment bond in accordance with O.C.G.A. §§ 13-10-1 and 13-10-2.

(3)

Any contractor entering a contract with the city must carry a worker's compensation policy at the minimum statutory limit, unless he is exempt under O.C.G.A. § 34-9-1 et seq.

(4)

Licensed professionals contracting with the city for services in the amount of $40,000.00 or more must provide professional liability coverage of $1,000,000.00.

(5)

Bids and performance bonds on [or] other security may be requested for supply contracts or service contracts as the purchasing agent or head of a using agency deems advisable to protect the city's interests. Any such bonding requirements shall be set forth in the solicitation. Bid or performance bonds shall not be used as a substitute for a determination of a bidder or offeror's responsibility.

(b)

Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the city to require a performance bond or other security in addition to those bonds, or in circumstances other than specified in sub-section (a) of this section.

(c)

Suits on payment bonds, right to institute, when and where bought. Actions on bonds required by this ordinance, by person's furnishing labor and material on city projects are governed by O.C.G.A. § 36-82-104 and § 36-82-105.

(d)

Irrevocable letter of credit. When the bond required does not exceed $300,000.00, the City may, in it's sole discretion, accept in lieu thereof, an irrevocable letter of credit issued by a bank or savings and loan association as defined at O.C.G.A. § 7-1-4.

(Ord. No. 0-10-01, § 2, 4-19-01)