NUMB:
981569
VERS:
ORIGINAL
REF:
XXBY:
THE CHAIR
TITLE:
A charter ordinance relating to performance guaranties for department of public works contracts. (DPW)
SECS:
7-14-3 rc
ANLS:
- Analysis -
This charter ordinance modifies requirements for department of public works (DPW) contractors to provide performance guaranties for contracts, as required by 1997 Wisconsin Act 237. The charter ordinance increases from $500 to $10,000 the minimum contract amount for which a performance bond is required.
The current charter authorizes the DPW commissioner to accept several different financial guarantees for contracts under $25,000, including such items as personal indemnities, promises to pay and bank deposits. The charter ordinance deletes the commissioner's options and instead requires, for all contracts between $10,000 and $25,000, either a letter of credit or a performance bond of 50% of the contract price.
BODY:
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 7-14-3 of the charter is repealed and recreated to read:
7-14. Duties when Common Council Orders Public Works.
3. PERFORMANCE BOND. a. All contracts involving $10,000 or more for performance of labor or furnishing materials when the same pertain to any public improvement or public work shall contain a provision for the payment by the prime contractor of all claims for labor performed and materials furnished, used or consumed in making the public improvement or performing the public work.
b. Such contracts whose cost exceeds $10,000 in cost but does not exceed $25,000, shall not be made unless the prime contractor gives either an irrevocable letter of credit or a performance and payment bond or bonds issued by a surety company licensed to do business in the state of Wisconsin. Such bond shall carry a penalty of not less than 50% of the contract price, and shall be conditioned for the faithful performance of the contract and the payment to each person e...
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