§ 43-35. Performance and payment bonds for construction contracts.

A. 

Upon the award of any 1) public construction contract exceeding $500,000 to any prime contractor; 2) construction contract exceeding $500,000 to any prime contractor requiring the performance of labor or the furnishing of materials for buildings, structures or other improvements to real property owned or leased by the County; 3) construction contract exceeding $500,000 in which the performance of labor or the furnishing of materials will be paid with public funds; or 4) transportation-related project exceeding $350,000 that is partially or wholly funded by the Commonwealth of Virginia, the contractor shall furnish to the County the following bonds:

(1) 

A performance bond, in a form acceptable to the County, in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications and conditions of the contract.

(2) 

A payment bond, in a form acceptable to the County, in the sum of the contract amount. Such bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in the prosecution of the work provided for in such contract and shall be conditioned upon the prompt payment for all such material furnished or labor supplied or performed in the prosecution of the work. "Labor or materials" shall include public utility services and reasonable rental of equipment, but only for periods when the equipment rented is actually used at the site.

B. 

For non-transportation-related construction contracts in excess of $100,000 but less than $500,000 where performance and payment bond requirements are waived, prospective contractors shall be prequalified in accordance with the Code of Virginia, § 2.2-4317. However, prequalification may be waived for any bidder with a current Class A contractor license for contracts in excess of $100,000 but less than $300,000 upon a written determination made by the Purchasing Agent in advance that waiving the requirement is in the best interests of the County. The County shall not enter into more than 10 such contracts per year.

C. 

Bonds shall be executed by one or more surety companies selected by the contractor which are legally authorized to do business in Virginia.

D. 

Bonds shall be made payable to the County.

E. 

Bonds shall be filed with the County.

F. 

Nothing in this section shall preclude the Purchasing Agent from requiring payment or performance bonds for non-transportation-related construction contracts below $500,000 and $350,000 for transportation-related construction contracts authorized under the Code of Virginia, § 33.2-208 et seq., and partially or wholly funded by the Commonwealth of Virginia.

G. 

A contractor may require each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the subcontract conditioned upon payment to all persons performing labor and furnishing materials in the prosecution of the work provided for in the subcontract.