Why are bonds required?

The City is required, with limited exceptions, to obtain both a Performance and a Payment bond for each public works project per RCW 39.08.010. The City requires separate Performance and Payment bonds for 100% of the contract amount furnished on bond forms standardized by the City Attorney's office.


Performance Bonds- The purpose of a performance bond is to guarantee that the Contractor shall “faithfully perform all provisions of the contract.”


Payment Bonds- The purpose of a payment bond is to guarantee that the Contractor shall “pay all laborers, mechanics and sub-contractors.”

State of Washington RCW 39.08.010

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1. What is Public Work?
2. What is required of a Contractor once they are awarded a Public Works Contract?
3. When will I get my retainage back?
4. What do I need to bid on a Public Works project?
5. Why are bonds required?
6. What is retainage?
7. What is prevailing wage?
8. What is a Notice of Completion?
9. Are prevailing wages required for non-standard items?