§ 22-36. Performance and payment bonds.

(a)

Upon the award of any (i) public construction contract exceeding five hundred thousand dollars ($500,000.00) awarded to any prime contractor; (ii) construction contract exceeding five hundred thousand dollars ($500,000.00) awarded to any prime contractor requiring the performance of labor or the furnishing of materials for buildings, structures or other improvements to real property owned by the county; or (iii) construction contract exceeding $500,000.00 in which the performance of labor or the furnishing of materials will be paid with public funds, such contractor shall furnish to the county the following bonds:

(1)

A performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications and conditions of the contract.

(2)

A payment bond in the sum of the contract amount. Such bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in the prosecution of the work provided for in such contract, and shall be conditioned upon the prompt payment for all such material furnished or labor supplied or performed in the prosecution of the work. Labor or materials shall include public utility services and reasonable rentals of equipment, but only for periods when the equipment rented is actually used at the site.

(b)

Each of such bonds shall be executed by one or more surety companies selected by the contractor which are legally authorized to do surety business in Virginia.

(c)

Such bonds shall be payable to the County of Gloucester.

(d)

Each of the bonds shall be filed with the County of Gloucester, or a designated officer or official thereof.

(e)

Nothing in this section shall preclude the Purchasing Manager from requiring payment or performance bonds for construction contracts for five hundred thousand dollars ($500,000.00) or less.

(f)

For nontransportation-related construction contracts in excess of $100,000.00 but less than $500,000.00, where the bid bond requirements are waived, prospective contractors shall be prequalified for each individual project in accordance with § 22-21.

(g)

Nothing in this section shall preclude such contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor, conditioned upon the payment to all persons who have and fulfill contracts which are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.

(Ord. of 1-5-2010; Ord. of 8-2-2011(1))

(Ord. of 1-5-2010; Ord. of 8-2-2011(1))