Ohio Administrative Code › Title 153:1 - Ohio Facilities Construction Commission (Public Facilities Construction) › Chapter 153:1-4 - Surety Bonds › Section 153:1-4-02 - Type and amount of surety bonds

Current through all regulations passed and filed through July 1, 2024
(A) Prior to the execution of the contract,
			 the construction manager at risk or design-build firm shall provide the public
			 authority with separate performance and payment bonds. The penal sum of each
			 bond shall equal one hundred per cent of the contract sum.
(B) If the contract sum increases at any time
			 after the construction manager at risk or design-build firm provides surety
			 bonds in accordance with paragraph (A) of this rule, the construction manager
			 at risk or design-build firm shall cause the penal sum of each surety bond to
			 be increased as necessary to maintain compliance with paragraph (A) of this
			 rule. The delivery of written consent from the affected surety or sureties to
			 the public authority by the construction manager at risk or design-build firm
			 confirming the increased penal sums is a condition precedent to the public
			 authority's obligation to pay the construction manager at risk or design-build
			 firm for any portion of the work associated with the increase in the contract
			 sum.
(C) If at any time prior to
			 final payment to the construction manager at risk or the design-build firm, any
			 surety providing a surety bond for the project (1) is adjudged bankrupt or has
			 made a general assignment for the benefit of its creditors; (2) has liquidated
			 all assets or has made a general assignment for the benefit of its creditors;
			 (3) is placed in receivership; (4) otherwise petitions a state or federal court
			 for protection from its creditors; or (5) allows its license to do business in
			 Ohio to lapse or to be revoked, then the construction manager at risk or the
			 design-build firm shall, within twenty-one days of any such action listed
			 above, provide the public authority with new surety bonds in the form and
			 amount described in the applicable subdivision of these rules. The delivery to
			 the public authority by the construction manager at risk or design-build firm
			 of replacement surety bonds is a condition precedent to the public authority's
			 obligation to make any payment to the construction manager at risk or
			 design-build firm.
(D) The public
			 authority shall require the construction manager at risk or the design-build
			 firm to submit a separate performance bond and a separate payment bond using
			 the "Performance Bond Form" and
			 "Payment Bond Form" found on the website of the
			 
								Ohio facilities
			 construction commission under either CM at Risk
			 or Design-Build: 
								
								http://ofcc.ohio.gov/Documents/AgreementsandStandardRequirements.aspx.
			 Any bond submitted under this rule shall name as obligee the public authority
			 or the state, as applicable.
Effective: 1/13/2017
Five Year
				Review (FYR) Dates: 10/28/2016 and
				01/13/2022
Promulgated
				Under: 119.03
Statutory
				Authority: 9.333(B),
				153.70(C)
Rule Amplifies:
				9.333,
				153.70
Prior
				Effective Dates: 12/26/2011