Code of Maryland Regulations › Title 21 - STATE PROCUREMENT REGULATIONS › Subtitle 07 - CONTRACT TERMS AND CONDITIONS › Chapter 21.07.02 - Mandatory Construction Contract Clauses › Section 21.07.02.10 - Performance and Payment Bonds

Current through Register Vol. 51, No. 14, July 12, 2024
Mandatory provision for all construction contracts exceeding
				  $100,000:
A. Performance Bond. The
				required performance bond shall be in the form specified as follows:
PERFORMANCE BOND
Principal
Business Address of Principal
Surety
a corporation of the State of_________________
and authorized to do business in the State of
							 Maryland
Obligee
STATE OF MARYLAND
Penal Sum of Bond (express in words and
							 figures)
________________________________
Description of Contract
Contract Number:____________________
Date of Contract
__________, 20___
Date Bond Executed
__________, 20___
KNOW ALL [MEN] BY THESE PRESENTS, That we, the Principal
				  named above and Surety named above, are held and firmly bound unto the Obligee
				  named above in the Penal Sum of this Performance Bond stated above, for the
				  payment of which Penal Sum we bind ourselves, our heirs, executors,
				  administrators, personal representatives, successors, and assigns, jointly and
				  severally, firmly by these presents. However, where Surety is composed of
				  corporations acting as co-sureties, we the co-sureties, bind ourselves, our
				  successors and assigns, in such Penal Sum jointly and severally as well as
				  severally only for the purpose of allowing a joint action or actions against
				  any or all of us, and for all other purposes each co-surety binds itself,
				  jointly and severally with the Principal, for the payment of such sum as
				  appears above its name below, but if no limit of liability is indicated, the
				  limit of such liability shall be the full amount of the Penal Sum.
WHEREAS, Principal has entered into or will enter into a
				  contract with the State of Maryland, by and through the Administration named
				  above acting for the State of Maryland, which contract is described and dated
				  as shown above, and incorporated herein by reference. The contract and all
				  items incorporated into the contract, together with any and all changes,
				  extensions of time, alterations, modifications, or additions to the contract or
				  to the work to be performed thereunder or to the Plans, Specifications, and
				  Special Provisions, or any of them, or to any other items incorporated into the
				  contract shall hereinafter be referred as "the Contract."
WHEREAS, it is one of the conditions precedent to the final
				  award of the Contract that these presents be executed.
NOW, THEREFORE, during the original term of said Contract,
				  during any extensions thereto that may be granted by the Administration, and
				  during the guarantee and warranty period, if any, required under the Contract,
				  unless otherwise stated therein, this Performance Bond shall remain in full
				  force and effect unless and until the following terms and conditions are
				  met:
1. Principal shall well and truly
				perform the Contract; and
2.
				Principal and Surety shall comply with the terms and conditions in this
				Performance Bond.
Whenever Principal shall be declared by the Administration to
				  be in default under the Contract, the Surety may, within 15 days after notice
				  of default from the Administration, notify the Administration of its election
				  to either promptly proceed to remedy the default or promptly proceed to
				  complete the contract in accordance with and subject to its terms and
				  conditions. In the event the Surety does not elect to exercise either of the
				  above stated options, then the Administration thereupon shall have the
				  remaining contract work completed, Surety to remain liable hereunder for all
				  expenses of completion up to but not exceeding the penal sum stated
				  above.
The Surety hereby stipulates and agrees that no change,
				  extension of time, alteration or addition to the terms of the Contract or to
				  the work to be performed thereunder or the Specifications accompanying the same
				  shall in any way affect its obligation on this Performance Bond, and it does
				  hereby waive notice of any such change, extension of time, alteration or
				  addition to the terms of the Contract or to the work or to the
				  Specifications.
This Performance Bond shall be governed by and construed in
				  accordance with the laws of the State of Maryland and any reference herein to
				  Principal or Surety in the singular shall include all entities in the plural
				  who or which are signatories under the Principal or Surety heading
				  below.
IN WITNESS WHEREOF, Principal and Surety have set their hands
				  and seals to this Performance Bond. If any individual is a signatory under the
				  Principal heading below, then each such individual has signed below on his or
				  her own behalf, has set forth below the name of the firm, if any, in whose name
				  he or she is doing business, and has set forth below his or her title as a sole
				  proprietor. If any partnership or joint venture is a signatory under the
				  Principal heading below, then all members of each such partnership or joint
				  venture have signed below, each member has set forth below the name of the
				  partnership or joint venture, and each member has set forth below his or her
				  title as a general partner, limited partner, or member of joint venture,
				  whichever is applicable. If any corporation is a signatory under the Principal
				  or Surety heading below, then each such corporation has caused the following:
				  the corporation's name to be set forth below, a duly authorized representative
				  of the corporation to affix below the corporation's seal and to attach hereto a
				  notarized corporate resolution of power of attorney authorizing such action,
				  and each such duly authorized representative to sign below and set forth below
				  his or her title as a representative of the corporation. If any individual acts
				  as a witness to any signature below, then each such individual has signed below
				  and has set forth below his or her title as a witness. All of the above has
				  been done as of the Date of Bond shown above.
In Presence of:
Witness:
____________________as to
Individual Principal
__________________(SEAL)
In Presence of:
Witness:
_____________________________
_______________________as to
_______________________ as to
_______________________ as to
Co-Partnership Principal
______________________(SEAL)
(Name of Co-Partnership)
By:________________________ (SEAL)
________________________(SEAL)
_________________________(SEAL)
Attest:
_____________________as to
Corporate Secretary
Corporate Principal
_______________________
(Name of Corporation)
AFFIX
By________________: CORPORATE
President SEAL
Attest: (SEAL)
_________________
Signature
Bonding Agent's Name:_________________
Agent's Address_________________
_______________________
(Corporate Surety)
By:________________SEAL
Title_______________________
___________________________
(Business Address of Surety)
Approved as to legal form and sufficiency this___ day
							 of_______ 20___
____________________________
Asst. Attorney General