Nevada Revised Statutes 408.357 – Bids and bidders: Bonds required of successful bidders; exception; conditions; sureties
1. Except as otherwise provided in NRS 408.354, every contract must provide for the filing and furnishing of one or more bonds by the successful bidder, with corporate sureties approved by the Department and authorized to do business in the State, in a sum equal to the full or total amount of the contract awarded. The bond or bonds must be performance bonds or labor and material bonds, or both.
Terms Used In Nevada Revised Statutes 408.357
- Contract: A legal written agreement that becomes binding when signed.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
2. The performance bonds must:
(a) Guarantee the faithful performance of the contract in accordance with the plans, specifications and terms of the contract.
(b) Be maintained for 1 year after the date of completion of the contract.
3. The labor and material bonds must:
(a) Secure payment of state and local taxes relating to the contract, premiums under the Nevada Industrial Insurance Act, contributions under the Unemployment Compensation Law, and payment of claims for labor, materials, provisions, implements, machinery, means of transportation or supplies furnished upon or used for the performance of the contract; and
(b) Provide that if the contractor or his or her subcontractors, or assigns, fail to pay for such taxes, premiums, contributions, labor and materials required of, and used or consumed by, the contractor or his or her subcontractors, the surety shall make the required payment in an amount not exceeding the total sum specified in the bond together with interest at a rate of 8 percent per annum. All such bonds must be otherwise conditioned as required by law or the Department.
4. No person bidding for work or submitting proposals under the provisions of this chapter may be accepted as surety on any bond.
5. Whenever the Department has cause to believe that the sureties or any of them have become insufficient, it may demand in writing of the contractor such further bonds or additional sureties, in a total sum not exceeding that originally required, as are necessary, considering the extent of the work remaining to be done. Thereafter no payment may be made upon the contract to the contractor or any assignee of the contractor until the further bonds or additional sureties have been furnished.
6. The Department in every contract may require the furnishing of proof by the successful bidder of public liability and insurance coverage for damage to property.