3.65.010 Bond of contractors for public buildings or works.
A. Except as otherwise provided in KIBC 3.65.020, before a construction contract exceeding $2,000 for the construction, alteration, or repair of a public building or public work of the borough is awarded to a general or specialty contractor, the contractor shall furnish to the borough the following bonds which will become binding upon the award of the contract to the contractor:
1. A payment bond with a corporate surety qualified to do business in the state, or at least two individuals who shall each qualify in a sum equal to the amount of the bond, for the prosecution of the work provided for in the contract. The payment bond shall be in amounts as follows:
a. When the total amount payable by the terms of the contract is not more than $1,000,000, the payment bond shall be in a sum of one-half the total amount payable by the terms of the contract;
b. When the total amount payable by the terms of the contract is more than $1,000,000, but not more than $6,250,000, the payment bond shall be in a sum of 40 percent of the total amount payable by the terms of the contract; or
c. When the total amount payable by the terms of the contract is more than $6,250,000, the payment bond shall be in a sum of $2,500,000.
2. A performance bond in an amount equal to the required payment bond with a corporate surety qualified to do business in the state or at least two individual sureties who shall each qualify for a sum equal to the amount of the bond.
B. When individual sureties are used to comply with the provisions of subsection A of this section, the net worth and the total value of the assets located in Alaska for each individual surety may not be less than the required amount of the bond. Each individual surety must execute an affidavit of individual surety on a form provided by the borough, demonstrating the sufficiency of the surety’s assets. Real property shall be valued at its assessed valuation, proof of which must accompany the affidavits, unless a current independent appraisal has been performed and a copy of the appraisal accompanies the affidavit. [Ord. 97-05 §6, 1997; Ord. 85-13-O §4, 1985; Ord. 84-42-O §2, 1984. Formerly §3.40.010].