Section 80IAC9-6-7. Performance bonds

   (a) The commission shall require the contractor to execute a good and sufficient performance bond to the commission in an amount equal to one hundred percent (100%) of the total contract price on all contracts over one hundred fifty thousand dollars ($150,000) in accordance with IC 5-16-5.5. The bond shall include at least the following provisions:

(1) The contractor shall well and faithfully perform the contract.

(2) No change, modifications, omission, or addition in or to the terms or conditions of the contract, plans, specifications, drawings, or profile or any irregularity or defect in the contract or in the procedures preliminary to the letting and awarding of the contract shall affect or operate to release or discharge the surety in any way.

(3) The provisions and conditions of this rule shall be a part of the terms of the contract and bond.

  (b) The commission may:

(1) permit the bond given by the contractor to provide for incremental bonding in the form of multiple or chronological bonds that, if taken as a whole, equal the total contract price; and

(2) accept bonds provided on forms:

(A) specified by the commission; or

(B) given by surety companies.

  (c) The commission shall not release sureties of a contractor until the expiration of one (1) year after the final settlement with the contractor. (State Fair Commission; 80 IAC 9-6-7; filed Nov 7, 2016, 3:46 p.m.: 20161207-IR-080160210FRA)