Performance and Payment Security; Waiver
(1)Public Improvement Contracts. Unless the required performance bond is waived under ORS 279C.380 (Performance bond)(1)(a), excused in cases of emergency under 279C.380 (Performance bond)(4), or unless the Contracting Agency’s Contract Review Authority exempts a Contract or classes of contracts from the required performance bond and payment bond pursuant to 279C.390 (Exemption of contracts from bid security and bonds), the Contractor shall execute and deliver to the Contracting Agency a performance bond and a payment bond each in a sum equal to the Contract Price for all Public Improvement Contracts. This requirement applies only to Public Improvement Contracts with a value, estimated by the Contracting Agency, of more than $100,000 or, in the case of Contracts for highways, bridges and other transportation projects, more than $50,000. See 279C.380 (Performance bond)(5). Under 279C.390 (Exemption of contracts from bid security and bonds)(3)(b) the Director of the Oregon Department of Transportation may reduce the performance bond amount for contracts financed from the proceeds of bonds issued under 367.620 (Limitation on bond amount)(3)(a). Also see OAR 137-049-0815 (BOLI Public Works Bond) and BOLI rules at 839-025-0015 (Public Works Bonds Requirements) regarding the separate requirement for a Public Works bond.
(2)Other Construction Contracts. A Contracting Agency may require performance security for other construction Contracts that are not Public Improvement Contracts. Such requirements shall be expressly set forth in the Solicitation Document.
(3)Requirement for Surety Bond. The Contracting Agency shall accept only a performance bond furnished by a surety company authorized to do business in Oregon unless otherwise specified in the Solicitation Document (i.e., the Contracting Agency may accept a cashier’s check or certified check in lieu or all or a portion of the required performance bond if specified in the Solicitation Document). The payment bond must be furnished by a surety company authorized to do business in Oregon, and in an amount equal to the full Contract Price.
(4)Time for Submission. The apparent successful Offeror must promptly furnish the required performance security upon the Contracting Agency’s request. If the Offeror fails to furnish the performance security as requested, the Contracting Agency may reject the Offer and Award the Contract to the Responsible Bidder with the next lowest Responsive Bid or the Responsible Proposer with the next highest-scoring Responsive Proposal, and, at the Contracting Agency’s discretion, the Offeror shall forfeit its Bid or Proposal security.
Rule 137-049-0460 — Performance and Payment Security; Waiver,