Code of Maryland Regulations › Title 21 - STATE PROCUREMENT REGULATIONS › Subtitle 07 - CONTRACT TERMS AND CONDITIONS › Chapter 21.07.02 - Mandatory Construction Contract Clauses › Section 21.07.02.11 - Performance and Payment Bonds-Multiyear Annual and Renewable

Current through Register Vol. 51, No. 14, July 12, 2024
Optional forms for multiyear construction contracts exceeding
				  $100,000 with annual and renewable surety bonds:
A. Performance Bond. The required performance
				bond shall be in the form specified as follows: ANNUAL PERFORMANCE
				BOND-RENEWABLE FOR MULTIYEAR A WARDS
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 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
				  multiyear contract with the State, by and through the Administration named
				  above acting for the State of Maryland, which contract is described 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 to as the "Contract".
The term of this Bond is for the period beginning on the date
				  the bond is executed and ending on the indicated Initial Term Fiscal Year
				  Ending Date (the "Initial Term"). If requested by the Principal, the Initial
				  Term may be extended, solely at the option of the Surety, for additional one
				  (1) year periods (each a "Renewal Term "), ending on the subsequent Fiscal Year
				  ending date. This Bond shall expire at the end of the Initial Term or, if
				  extended, at the end of the final Renewal Term. Provided that at any time
				  should the surety elect not to extend the bond for a Renewal Term, it must so
				  inform the Obligee in writing prior to ninety (90) days before the expiry of
				  the existing Initial Term or final Renewal Term. If the surety does not so
				  inform the Obligee of its intention not to extend the bond as stated herein,
				  the bond will automatically be deemed extended for an additional Renewal
				  Term.
WHEREAS, it is one of the conditions precedent to the final
				  award of the Contract that these presents be executed.
NOW, THEREFORE, during the initial term of said Contract, any
				  renewal term, and 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:
______________________
Co-Partnership Principal
____________(SEAL)
______________________as to
______________________as to
______________________as to
(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