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Bonding Requirements

9.0 BONDING REQUIREMENTS

9.1 General. The standards under this section apply to construction contracts that exceed $100,000.00. There are no bonding requirements for small purchases or for competitive proposals. The Agency may require bonds in these latter circumstances when deemed appropriate; however, non-construction contracts do not require bid bonds.

9.1.1Bid Bonds. For construction contracts exceeding $100,000.00, offerors shall be required to submit a bid guarantee from each bidder equivalent to 5% of the bid price.
9.1.2 Payment Bonds. For construction contracts exceeding $100,000.00, the successful bidder shall furnish an assurance of completion. This assurance may be any one of the following four:
- 9.1.2.1 A performance and payment bond in a penal sum of 100% of the contract price; or
- 9.1.2.2 Separate performance and payment bonds, each for 50% or more of the contract price; or
- These bonds must be obtained from guarantee or surety companies acceptable to the U. S. Government and authorized to do business in the State of Mississippi. Individual sureties shall not be considered. U. S. Treasury Circular Number 570 lists companies approved to function as sureties on bonds securing Government contracts, the maximum underwriting limits on each contract bonded, and the States in which the company is licensed to do business. Use of companies on this circular is mandatory.