Source: https://apps.leg.wa.gov/wac/default.aspx?cite=468-320&full=true
Timestamp: 2020-07-09 21:32:09
Document Index: 738297301

Matched Legal Cases: ['§ 468', '§ 468', '§ 468', '§ 468', '§ 468', '§ 468', '§ 468', '§ 468']

Chapter 468-320 WAC:
WACs > Title 468 > Chapter 468-320
Chapter 468-320 WAC
Last Update: 10/26/89
WASHINGTON STATE FERRY VESSEL CONSTRUCTION, MAINTENANCE AND REPAIR CONTRACTS—ALTERNATE FORMS OF SECURITY AND DETERMINATION OF BONDING AMOUNT REQUIRED
HTMLPDF 468-320-010 Marine contract security—General requirements.
HTMLPDF 468-320-020 State's exposure to loss.
HTMLPDF 468-320-030 Calculation of state's exposure to loss.
HTMLPDF 468-320-040 Alternate forms of security.
HTMLPDF 468-320-050 Specific requirements for alternate forms of security.
HTMLPDF 468-320-060 Warranty coverage.
HTMLPDF 468-320-070 Replacement bond option.
HTMLPDF 468-320-080 Prohibition of double security.
HTMLPDF 468-320-090 Delivery of alternate security to the state.
HTMLPDF 468-320-100 Delegation of authority.
PDF468-320-010
Marine contract security—General requirements.
(1) As required by chapter 58, Laws of 1989, the bond and/or alternate form(s) of security for a contract for construction, maintenance or repair of a marine vessel by the Washington state department of transportation (hereafter "contract"), shall be in an amount adequate to protect one hundred percent of the state's exposure to loss on such contract. The contractor shall provide either:
(a) An executed contract bond, as described in RCW 39.08.010, in the amount of one hundred percent of the state's exposure to loss and in the form required in the bid specifications; or
(b) A combination of security, totaling one hundred percent of the state's exposure to loss, consisting of:
(i) An executed payment bond in the amount of the state's payment exposure (see WAC 468-320-030) as stated in the bid specifications, which is adequate to fully protect the state against claims for work done by laborers, mechanics, subcontractors, materialmen and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, when such persons have not been paid by the contractor, and the state has paid for such work; and
(ii) An executed contract bond and/or alternate form(s) of security totaling one hundred percent of the state's performance exposure (see WAC 468-320-030) as provided herein; or
(c) An executed contract bond and/or alternate form(s) of security totaling one hundred percent of the state's performance exposure, if the state, in performing the analysis described in WAC 468-320-030, determines that contract payment procedures completely eliminate its payment exposure (see WAC 468-320-030), and the state so provides in the bid specifications.
(2) Subject to the warranty coverage requirements of WAC 468-320-060 and 468-320-070, such bond and/or alternate form(s) of security shall remain in effect from the date of contract execution until the state has accepted the contract work, the lien claim period has passed, any liens filed under chapter 60.28 RCW have been settled, and all releases from other state of Washington agencies have been received.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-010, filed 10/26/89, effective 11/26/89.]
PDF468-320-020
State's exposure to loss.
The state's exposure to loss in such a contract is equal to the amount calculated in the written loss evaluation process described in WAC 468-320-030.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-020, filed 10/26/89, effective 11/26/89.]
PDF468-320-030
PDF468-320-040
Alternate forms of security.
In addition to a contract bond, the following alternate forms of contract security are acceptable if they provide protection in an amount at least equal to the state's exposure to performance loss, meet all legal requirements for effectiveness and authenticity, are specified in the bid specifications for a particular contract as being acceptable for that contract, and meet all of the special requirements set forth below and in the bid specifications for the particular contract:
(1) Certified check;
(3) Treasury bill(s);
(4) Irrevocable bank letter of credit;
(5) Assignment of a savings account;
(6) Assignment of other liquid assets specifically approved by the assistant secretary for marine transportation or his designee.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-040, filed 10/26/89, effective 11/26/89.]
PDF468-320-050
PDF468-320-060
All forms of contract security provided by a contractor shall ensure that the state receives warranty coverage for all losses resulting from any defects in material and workmanship for the period beginning on the date of redelivery of the vessel to the state and ending one year after that date. Such warranty coverage shall be at least as effective in protecting the state as that contained in the state's standard contract bond. Warranty coverage under a contract bond shall be specified in the bond and shall equal ten percent of the penal sum of the bond. Warranty coverage under alternate forms of security shall be in an amount specified in the bid specifications, increased or decreased by ten percent of the net amount of any change orders, and shall be delivered to the state as provided in WAC 468-320-090.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-060, filed 10/26/89, effective 11/26/89.]
PDF468-320-070
Replacement bond option.
As an alternative to the warranty coverage described in WAC 468-320-060, a contractor may, for the period beginning on the date of redelivery of the vessel to the state and ending one year after that date, provide a replacement bond in the amount specified for warranty coverage in the bid specifications, increased or decreased by ten percent of the net amount of any change orders. Such replacement bond shall be in the form required in the bid specifications, and shall be delivered to the state as provided in WAC 468-320-090.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-070, filed 10/26/89, effective 11/26/89.]
PDF468-320-080
Prohibition of double security.
Assets used as an alternate form of contract security shall not also be used to secure a contract bond on the contract.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-080, filed 10/26/89, effective 11/26/89.]
PDF468-320-090
Delivery of alternate security to the state.
All alternate forms of security permitted by these regulations and the bid specifications for a contract shall be delivered to the state in the manner provided in the bid specifications for delivery of a contract bond, unless provided otherwise in the bid specifications.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-090, filed 10/26/89, effective 11/26/89.]
PDF468-320-100
The assistant secretary for marine transportation is hereby delegated authority to administer the provisions of chapter 58, Laws of 1989 and chapter 468-320 WAC. The assistant secretary for marine transportation may further delegate authority to exercise all such powers.
[Statutory Authority: Chapter 34.05 RCW and 1989 c 58. WSR 89-22-028, § 468-320-100, filed 10/26/89, effective 11/26/89.]