Indiana Code 8-23-9.5-26. Payment and performance bonds
Current as of: 2023 | Check for updates
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Sec. 26. (a) A contract with the department entered into under this chapter must require the selected CMGC or PDB to provide payment and performance bonds in an amount not less than the estimated cost of:
(2) the GMP, as described in the request for proposals.
(1) the project; or
Terms Used In Indiana Code 8-23-9.5-26
- Contract: A legal written agreement that becomes binding when signed.
- design services: means services performed by a professional services consultant that is qualified by the department to provide services. See Indiana Code 8-23-9.5-4
- GMP: refers to the guaranteed maximum price for work established by a contract. See Indiana Code 8-23-9.5-6
- project: means services provided using a two-phase contract with a CMGC or a PDB for preconstruction services and construction services to design, construct, alter, or repair:
Indiana Code 8-23-9.5-11
- request for proposals: refers to the process by which the department solicits persons to provide services as a CMGC or PDB under this chapter. See Indiana Code 8-23-9.5-14
(b) Construction services may not be performed until the CMGC or the PDB has provided the bonds as required under subsection (a).
(c) A performance or payment bond is not required for, and does not provide coverage for, a part of a contract that includes only design services.
(d) This section does not impair the ability of the department to seek recovery under a contract from the selected CMGC or PDB for errors, omissions, or defects in design services.
As added by P.L.60-2023, SEC.2.