§ 17-103 — Bonds Relating to Procurement Contracts

§ 17-103. Bonds Relating to Procurement Contracts.

(1) The Procurement Department, with the consent of the Law Department, may permit the reduction of a contractor’s bond or the substitution of a new bond in smaller amount whenever a contractor has satisfactorily performed the contractor’s basic obligation to perform duties of maintenance or repair as to work done or goods supplied. 10 (2) Performance and Payment Bonds. The Procurement Department shall, in accordance with the Act of December 20, 1967, P.L. 869 (8 P.S. §§ 191 et seq., as amended) require performance and payment bonds, or such other financial security as allowed by the Act, before work is commenced under any contract for the construction, erection, installation, completion, alteration, repair, or addition to, any public work or improvement of any kind where the amount of the contract is in excess of five thousand dollars ($5,000). 11 (3) Disclosure and Monitoring of Bond Acquisition Costs. Prospective bidders shall disclose the cost for the acquisition of the performance and payment bonds. The Procurement Department shall collect, maintain, and analyze information provided by bidders about bond costs. Notes 9.1 | Amended, Bill No. 260458 (approved June 23, 2026). 10 | Source: 1885 Ordinances, p. 331. 11 | Source: 1932 Ordinances, p. 109; see also 53 P.S. §§ 1292 - 1297 and City Solicitor's Formal Opinion No. 112 (1954).