2.557 Performance and Payment Bond.
(1) Public Improvement Contract. Except as described in subsection (5) of this section, a performance bond and a payment bond in a sum equal to the contract price shall be required for all public improvement contracts.
(2) Other Public Contracts. The manager may require performance security for other public contracts. Such requirements shall be stated in the bid documents.
(3) Requirement for Surety Bond. A surety bond furnished by a surety company authorized to do business in Oregon is the only acceptable form of performance security unless specified in the bid documents.
(4) Time for Submission. Upon request by the City, the apparent successful bidder must furnish the required performance bond within 10 days. Prompt submittal of the performance bond is required to ensure timely project initiation. Failure to furnish the bond prior to the deadline may result in rejection of the bid, and forfeiture of bid security and award to the next lowest responsible bidder.
(5) Bond Not Required. The performance and payment bond described above are not required, but may be requested by the City, under the following circumstances:
(a) For highways, bridges and other transportation projects, when the estimated value of the project does not exceed $50,000;
(b) For public improvement projects, when the estimated value of the project does not exceed $100,000;
(c) In the case of an emergency, pursuant to Section 2.565; or
(d) Upon a finding the City’s interests or property would suffer material injury by delay or other cause.