• DJCD: Bonding Requirements


    It is the policy of the Cleveland Municipal School District that all procurement transactions will be conducted in a manner that does not restrict competition. Concerns regarding excessive bonding requirements for service contracts have led the District to adopt the following guidelines pertaining to bonding requirements.

    The intent of the bonding requirements is to protect the District from a potential supplier defaulting on an agreement.

    Bid Guarantees

    A "bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of its bid, execute such contractual documents as may be required within the time specified. Bid guarantees should be equivalent to 10% of the bid price.

    Performance Bond

    A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such a contract. Performance bonds usually should be equivalent to 100% of the contract price.

    Payment Bond

    A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and materials in execution of the work provided for in the contract. A payment bond should be equivalent to 100% of the contract price.

    A bid or proposal bond may be required on a proposal.

    The ability of a vendor to obtain a bond is determined when application is made for a bid bond. The performance bond is then automatically activated if so designated.

    Bid bond requirements for construction contracts shall follow the guidelines as set forth in Ohio Revised Code Sections 153.54 and 153.57.

    Bid and Performance Bond Requirements for Particular Contracts





    Including construction, demolition, alteration, repair or reconstruction



    Supplies and Services

    Over an extended period of time and presenting a minimum of bondable exposure




    The particular item and/or service involved requires individual bonding considerations

    • School buses
    • Elevator Service
    • Rubbish Removal




    Requirements for Other Types of Contracts

    The requirement for other types of contracts are to be determined on an individual basis by specifications and details of the particular bid.

    The following services do not present the possibility of a bonding loss:

    • Athletic Physical Examinations
    • Summer Youth Physicals
    • Stadium Concessionaires
    • Psychological Services
    • Insurance Contracts
    • Testing Services
    • Temporary Clerical Services
    • Repair Parts – Transportation
    • Leased Truck Drivers
    • School Climate Survey
    • Architects Professional Services
    • Ambulance Services
    • Security Guards
    • Office Supplies


    • Adopted: May 16, 2002
    • Reviewed: December 17, 2019

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