2023 District of Columbia Code › Title 2 - Government Administration › Chapter 2 - Government Contracts and Business Development › Subchapter I - Bonding Requirement › Part A - General › § 2–201.01. Bonds required from public contractors; amount; waiver

§ 2–201.01. Bonds required from public contractors; amount; waiver.
(a) Before any contract, exceeding $25,000 in amount, for the construction, alteration, or repair of any public building or public work of the District of Columbia is awarded to any person, such person shall furnish to the District of Columbia the following bonds, which shall become binding upon the award of the contract to such person, who is hereinafter designated as “contractor”: (1) A performance bond with a surety or sureties satisfactory to the Mayor of the District of Columbia, and in such amount as he shall deem adequate, for the protection of the District of Columbia; (2) a payment bond with a surety or sureties satisfactory to the Mayor for the protection of all persons supplying labor and material in the prosecution of the work provided for in said contract for the use of each such person. Whenever the total amount payable by the terms of the contract shall be not more than $1,000,000, the payment bond shall be in a sum equal to one-half the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $1,000,000 and not more than $5,000,000, the said payment bond shall be in a sum equal to 40 per centum of the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $5,000,000 the payment bond shall be in the sum of $2,500,000.
(b) Nothing in this section shall be construed to limit the authority of the Mayor to require a performance bond or other security in addition to those, or in cases other than the cases specified in subsection (a) of this section, or the authority of the Mayor to waive the requirement for performance and payment bonds in such cases as he shall determine.
(c) Any surety bond required by this section shall be executed by a surety certified by the U.S. Department of Treasury to do business pursuant to § 9305 of Title 31, United States Code, or a surety company licensed in the District of Columbia which meets the statutory capital and surplus requirements or as otherwise determined by the Mayor to be appropriate and necessary in the amount for underwriting such bonds.
(Aug. 3, 1968, 82 Stat. 628, Pub. L. 90-455, § 1; Aug. 14, 1973, 87 Stat. 305, Pub. L. 93-89, title V, § 501; Mar. 29, 1977, D.C. Law 1-95, § 11(a), 23 DCR 9532b; July 23, 1994, D.C. Law 10-140, § 3, 41 DCR 3053; Apr. 12, 2000, D.C. Law 13-91, § 115, 47 DCR 520; Oct. 4, 2000, D.C. Law 13-169, § 5, 47 DCR 5846.)
Prior Codifications
1981 Ed., § 1-1104.
1973 Ed., § 1-804a.
Effect of Amendments
D.C. Law 13-91, in subsec. (b), substituted “Local Business Opportunity Commission” for “Minority Business Opportunity Commission”.
D.C. Law 13-169, in subsec. (b), substituted “the authority of the Mayor to” for “he, through the District of Columbia Local Business Opportunity Commission, may”.
Emergency Legislation
For temporary (90-day) amendment of section, see § 5 of the Equal Opportunity for Local, Small, or Disadvantaged Business Enterprises Emergency Amendment Act of 2000 (D.C. Act 13-415, August 14, 2000, 47 DCR 7296).
Temporary Legislation
For temporary (225 day) amendment of section, see § 5 of Equal Opportunity for Local, Small, or Disadvantaged Business Enterprises Temporary Amendment Act of 2000 (D.C. Law 13-216, Apr. 3, 2001, law notification 48 DCR 3458).
Editor's Notes
Definitions applicable: Section 6 of the Act of August 3, 1968, Pub. L. 90-445, provided that, as used in that Act, the term “person” and the masculine pronoun would include all persons whether individuals, associations, copartnerships, or corporations.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 401 of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to a single Commissioner. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.