What are the bonding requirements?
• There are several types of Bonds that may be required – Bid Bonds, Performance Bonds and Payment Bonds. See information in the “City of Suffolk Procurement Manual Policies and Procedures”. Bonds are normally not required for projects estimated to cost less than $25,000. The Purchasing office, however, may require a bond if it is believed to be in the City’s best interest. Bonds may be issued by an approved surety firm, be in the form of a cashier’s check, or, with the prior approval of the City Attorney, be in the form of an irrevocable letter of credit with an approved financial institution.
Bonds are normally not required for projects estimated to cost less than $100,000. The Director of Procurement and Contract Management, however, may require a bond if he believes it is in the City’s best interests. Bonds may be issued by an approved surety firm, be in the form of a cashier’s check, or, with the prior approval of the City Attorney, be in the form of an irrevocable letter of credit with an approved financial institution.
