Pleasant Grove Review | 1984-08-23 | Page 12 | Council Changes Construction Bond Ordinance

Council changes construction bond ordinance Pleasant Grove City Council-Tuesday Council-Tuesday night approved a change v to the ordinance governing completion guarantee bonds from contractors to the city. The council will require contractors to place a 100 per cent corporate surety bond and a cash bond of 15 percent to guarantee completion of all improvements in a project. They felt this would allow for sufficient funds for the city to complete the work if default should occur. Several instances in the past when money had been released from a bond leaving insufficient funds to finish a project or when a property bond has been unusable has caused the city to take this x action. The council had first discussed a 25 percent cash bond in addition to the corporate surety bond but felt that that might be a bit too difficult for the contractors to come up with. The city has asked a 10 percent cash bond in the past but learned from experience that often this was not enough to make the improvements when default occurs.