N.J. Admin. Code § 7:26H-6.9

Current through Register Vol. 56, No. 7, April 1, 2024

Section 7:26H-6.9 - Performance bonds

(a) For a one-year collection contract, the successful bidder shall submit a performance bond in accordance with the following:

1. The successful bidder shall provide, at the time and place specified by the contracting unit, a one-year performance bond issued by a surety in an amount equal to no more than 100 percent of the award price; provided, however, that the time set for delivery of the performance bond is prior to or concurrent with the time set for the delivery of the executed contract; and

2. If the successful bidder fails to provide said performance bond prior to or at the time specified, then the contracting unit may declare the successful bidder to be non-responsive and award the contract to the next lowest responsible bidder or terminate the bid process and re-bid the collection services in accordance with the provisions of this subchapter. Failure to deliver the performance bond at the time and place specified by the contracting unit shall be cause for the assessment of damages in an amount equal to the amount of the bid guarantee.

(b) For a multi-year collection contract, the successful bidder shall submit performance bonds in conformance with the following:

1. The successful bidder shall provide, at the time and place specified by the contracting unit, a performance bond issued by a surety in an amount equal to no more than 100 percent of the annual value of the contract; provided, however, that the time set for delivery of the performance bond shall be prior to or concurrent with the time set for the delivery of the executed contract. The "annual value of the contract" shall be included in the notice of award to the bidder and shall be equal to the total bid price for each year of the contract. The contractor shall provide a one-year performance bond for each succeeding year of the contract in an amount equal to no more than 100 percent of the annual value of the contract for each succeeding year. The performance bond for each succeeding year shall be delivered to the contracting unit with proof of full payment of the premium 120 days prior to the expiration of the current bond;

2. If the successful bidder fails to provide a performance bond for the first year of the contract, then the contracting unit may declare the successful bidder to be non-responsive and award the contract to the next lowest responsible bidder or terminate the bid process and re-bid the collection services in accordance with the provisions of this subchapter. Failure to deliver the performance bond at the time and place specified by the contracting unit shall be cause for the assessment of damages in an amount equal to the amount of the bid guarantee; and

3. Failure to deliver a performance bond for any year of the contract a minimum of 120 days prior to the termination of the current bond will constitute a breach of contract and shall entitle the governing body to terminate the contract upon the expiration of the current bond. Notwithstanding termination pursuant to this section, the contractor is obligated to fully perform through the date of termination of the contract and the contractor shall be subject to damages in an amount equal to the costs associated with re-bidding the collection contract.

N.J. Admin. Code § 7:26H-6.9

Amended by R.2002 d.356, effective 11/4/2002.
See: 34 New Jersey Register 1792(a), 34 New Jersey Register 3819(a).
In (b)2, substituted "provide" for "provided" preceding "a performance bond".

Administrative Change, 55 N.J.R. 2003(a), effective 8/23/2023