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Bid Bond on Time & Material Contract
By Anonymous on Thursday, May 31, 2001 - 02:13 pm:

When issuing a T&M Contract for an amount not to exceed 25,000.00 do you request a bid bond? If not, what protection would you have. It is on an as needed basis. Should you request 5% of the not to exceed amount?

By Charlie Dan on Thursday, May 31, 2001 - 02:54 pm:

You do not request a bond.

The Miller Act requires bonds for construction contracts exceeding $100,000, as cited in FAR 28.102-1(a). On other than construction contracts, FAR 28.103-2(a) indicates that you would require bonds only above the simplified acquisition threshhold ($100,000 per FAR 2.101).

The low dollar values of the actions do not warrant the use of bonds. Bonding requirements limit the number of bidders and increase the amounts of bids.

By Anonymous on Thursday, May 31, 2001 - 07:34 pm:

Thanks. I am preparing a T&M Contract for electrical services. On the pricing schedule the Project Manager want to list all electrical items such light bulbs, outlets, etc. He want to factor the price of each item. How can you do that? He wants weight factors for the hours worked. An example of the Pricing Schedule:

labor Hourly Weight
Classification rate Factor
Master Electrician $32.00hr 200 hours

That is an example of the labor rate. How can you put factors on commercial line items. They want to eliminate the GC from raising their prices. If you can please help me understand or a solution to resolve the problem.
Maybe I should ask how can they stop a GC from ripping them off?