Perfromance Bonds on Service Contracts
New York SB 1246 would require a performance bond on contracts in excess of $500,000 for the state and political subdivisions to purchase private security services. The performance bond would be required to be in an amount adequate to ensure the protection of the government, but shall be no less than 50% of the amount payable under the contract.
In addition, Surety Association of America is working with the bill sponsor of the law to see that the bond will be renewed annually because many of these contracts are multi-year agreements.
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