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City requires 100% performance/payment bonds and $10M pollution liability for demolition bidders
Summary
Exhibit A requires the awarded contractor to provide payment and performance bonds equal to 100% of the contract price and to carry commercial general liability, pollution liability ($10,000,000), workers' compensation, professional liability and umbrella coverages before work begins.
Exhibit A to the Jan. 29 minutes sets detailed surety and insurance requirements for any contractor awarded the Old Byron School demolition contract. The RFP requires the contractor to submit payment and performance bonds in the amount of 100% of the contract price and specifies that the surety company must have a B+ rating or better from A.M. Best and be licensed in Georgia.
On insurance, the RFP calls for commercial general liability with multi-million-dollar limits, business automobile coverage, workers' compensation and employer's liability, professional (errors and omissions) liability, and contractor's pollution liability with minimum limits of $10,000,000 per occurrence and in the aggregate. The RFP further requires the City of Byron and other specified entities be named as additional insureds and that many coverages include waivers of subrogation. The minutes also require that Certificates of Insurance and endorsements be filed with the city before work begins.
The RFP language is explicit: "The Contractor to whom the award is made shall submit a payment bond and a performance bond in the amount of one hundred percent (100%) of the contract price." That same Exhibit A details pollution-liability requirements and extended products/completed operations coverages that bidders must maintain for the applicable statute of repose.
These requirements may materially affect which firms can bid, because they raise the threshold for surety capacity and insurance limits. Bidders should verify bonding and coverage availabilities with their insurers and confirm any inconsistencies in the transcripted procurement documents with city staff prior to submitting a bid.
