Good afternoon,
This inquiry is similar to a recent inquiry regarding performance bonds. I saw several responses indicating that performance bonds were not required and I’ve gotten additional responses that were similar. We are developing a contract draft for public art and the attorney would like to require a payment bond in relation to the prevailing wage requirement for public works. Is there any feedback available regarding payment bonds specifically? Here’s a definition for reference:
A payment bond is a type of contract surety bond that guarantees a contractor or subcontractor will pay their subcontractors, material suppliers or laborers for the work and materials provided. Should the principal of the bond breach their construction contract, the payment bond acts as an assurance of payment to certain parties are issued.
A local municipality has responded that their contract states that agreements for subcontractors are between the artist and the subcontractors and do not bind nor purport said municipality. Do other municipalities require payment bonds and. If so, what is a standard rate range?
Your comments are appreciated!
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George Davis
Public Art Coordinator
Department of Parks and Recreation
827 East Avenue Q-9
Palmdale, CA 93550
661/267-5686 Direct
661/267-5611 Main
661/267-5636 Fax
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