What Is A Bid Bond And A Performance Bond | Underwriter For Insurance

   

		

			
      
19-56.057 Reduction in performance security.

Upon the written application of the subdivider, the Director of Public Works may authorize in writing a reduction and release of a portion of the performance security upon the satisfactory completion of a discrete part or portion of the required subdivision improvements as the work progresses; provided, however, no reduction shall be authorized or allowed until all streets shown on the improvement plans referenced in the subdivision improvement agreement have been paved. The amount of any reduction of the performance security shall be determined by the Director of Public Works, but in no event shall it be reduced below 50 percent of the original estimated cost of all required subdivision improvements and the retained amount of the performance security shall be sufficient, in the determination of the Director of Public Works, to cover the original estimated costs of all unfinished required improvements and the possible loss or damage to the completed improvements which foreseeably might occur prior to City’s acceptance of all required improvements. A reduction in the performance security, authorized under this section, is not, and shall not be deemed to be, an acceptance by the City of any completed improvements and the risk of loss or damage to such improvements shall remain the sole responsibility of the subdivider until all required public improvements have been accepted by the Director of Public Works and all other required improvements have been completed to the satisfaction of the Director of Public Works. (Ord. 3415  1, 1999)

 


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