3048. BONDS, INSURANCE AND OTHER FINANCIAL PROTECTIONS

3048 BONDS, INSURANCE AND OTHE FINANCIAL PROTECTIONS 3048.1 The CCO has the discretion to require any types of security specified in this section for any solicitation or contract including the following: Bid bonds or proposal bonds; Performance or payment bonds for construction; Performance or payment bonds or other security for non-construction contracts; 3048.2 The CCO shall consider the following factors in non-construction contracts: Whether University property or funds are to be provided to the contractor for use in performing the contract or as partial compensation (such as retention of salvaged material); When a contractor sells assets to or merges with another business entity, whether the University (after recognizing the other entity as the successor in interest) needs assurance that it is financially capable; Whether substantial progress payments are to be made before delivery of end items starts; Whether the contract is for dismantling, demolition, or removal of improvements; or Any other factors which might favor the use of security instruments to protect the best interests of the University. 3048.3 A payment security shall be required only when a performance security is required and the use of the payment security is in the best interests of the University. 3048.4 When a security is required by the University, the CCO may accept any of the following types of security: A bond provided by a surety in accordance with Section 3049; A certified check or irrevocable letter of credit issued by an insured financial institution in the equivalent amount of the security; or United States government securities that are assigned to the University which pledge the full faith and credit of the United States; Any other security determined by the CCO to be adequate. 3048.5 The CCO shall determine a contractor’s responsibility even though security has been or can be obtained. SOURCE: Final Rulemaking published at 57 DCR 2630 (Mar. 2010).