IB-12. Contract Bond
The successful bidder shall, within ten days or such time as may be fixed by the City Commission for executing the contract, file a contract bond with the City Auditor in a sum equal to the full amount of the contract. Said bond shall be executed by the bidder or contractor as principal and a surety company authorized to do business in the State of North Dakota as surety or by two or more freeholders who are residents of this State. If said bond is executed by individuals as sureties, such sureties must attach to such bond a certificate of justification, showing that they possess the qualifications required of sureties in arrest and bail, and are worth, in aggregate, in property located within this State a sum equal to twice the penalty of the bond, over and above their exemptions.
The contract bond shall be made payable to the City and shall be conditioned on the contractor's full and faithful performance of the work bid for in accordance with the terms and within the time provided for in such contract and pursuant to the plans and specifications on file in the office of the City Auditor and payment for all labor and material used in such work. In case of default on the part of the bidder or contractor to perform such work as provided in the contract; the sum names in the bond shall be taken and held to be fixed and liquidated damages in favor of the said City and the full amount thereof may be recovered from the contractor and his sureties in an action by the City against them on their bonds. Failure of the principal to make, prior to the commencement of any work by himself or any subcontractor under contract, full and true report to the Workmen's Compensation Bureau of the payroll expenditures for the employees to be engaged in such work, and payment of the premium thereon prior to the commencement of said work shall be deemed and default under the terms of this bond. The sufficiency of any bond filed by a bidder shall be determined by the City Commission at the time of considering bids. If the Commission shall at any time deem the bond of the contractor insufficient, either in form or sufficiency of sureties, it may require the successful bidder or contractor to furnish a new bond. Said bond to be approved by the President of the City Commission, within such reasonable time as the Commission may fix and if the bidder or contractor shall fail to furnish such new bond within the time required after notice to him to do so, his contract shall be cancelled and the contractor's bond shall be liable the same as if the contractor had failed to perform the contract.