The Purchasing Department shall have the right to request any or all of the following assurances from vendors to satisfy the City of Opelika's concern of conducting business and / or verify the ability of a vendor to provide described services.
- Bid / Proposal Bond - to be submitted by the Vendor with their response to a Request for Bid / Proposal in the amount of approximately 5% of the total amount bid / proposed. Such bond will be used to ensure that the awarded vendor will enter into a contract / accept a purchase order to provide the agreed upon materials / services.
- Vendors may provide such bond in the form of a Bid Bond from an accredited insurance company or certified / cashier's check made payable to the City of Opelika.
- The Purchasing Department shall have the right to retain the Bid / Proposal bonds of all vendors until as such time it is determined that an award can be made.
- Performance Bond - to be submitted by the Vendor selected for award to assure the City that the described / contracted materials / services will be provided. Generally, the amount is equal to one hundred percent (100%) of the total amount bid / proposed.
- Vendors shall provide such bond in an AIA format or from an accredited insurance company as approved by the City of Opelika Purchasing Agent or Risk Manager.
- The Purchasing department shall retain the right to increase the amount of the performance bond to allow for contingencies or modifications to contractual amounts.
- Letter of Credit - to be submitted by the Vendor selected for award to assure the financial capacity to provide goods and / or services during a contractual period.
- Labor and Material Payment Bond - Labor and Material Bond shall be submitted by successful vendor for a construction project as surety, payable to the City of Opelika for not less than 50% of the contract price, with the obligation that such contractor shall promptly make payments to all persons supplying him / her with labor, materials or supplies for the payment of reasonable attorneys' fees incurred by successful claimants or plaintiffs in civil actions on said bond. Bonds are not required on contracts of less than $10,000.
- Insurance Certificate - to be submitted by the vendor selected for award to assure the City the protection is available and that the City is protected as an additional assured for provision of materials, labor / services, motor vehicle liability and worker's compensation requirements. The City of Opelika Risk Manager shall be consulted to determine the applicable amounts.
- Vendors shall provide a certificate from an accredited insurance company and in a format approved by the Risk Manager that will remain in effect for the entire contractual period.
- Financial Statements - to be submitted by the vendor selected for award to assure the City of their ability to fiscally provide the described services. The City of Opelika shall retain the right to request audited / reviewed financial statements, current affidavits of financial standings, annual reports, or conduct their own investigation to satisfy and protects its interest before entering into a contractual agreement.