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Exhibit'F' ADDENDUM TO CONTRACT, FTA CONTRACT REQUIREMENTS Page 13 of 23 Performance and Payment Bonding Requirements (Construction Contracts) The Contractor shall be required to obtain performance and payment bonds as follows: (a) Performance bonds 1. The penal amount of performance bonds shali be 100 percent of the original contract price, unless the Recipient determines that a lesser amount would be adequate for the protection of the Recipient. 2. The Recipient may require additional performance bond protection when a contract price is increased. The increase in protection shall generally equal 100 percent of the increase in contract price. The Recipient may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. (b) Payment bonds 1. The penal amount of the payment bonds shall equal 100 percent of [he contract price, unless the Recipient determines that a lesser amount would be adequate for the protection of the Recipient. 2. The Recipient may require additional payment bond protection when a contract price is increased. The increase in protection shall generally equal 100 percent of the increase in contract price. The Recipient may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. Performance and Payment Bonding Requirements (Non-Construction Contracts) The Contractor may be required to obtain performance and payment bonds when necessary to protect the Recipient's interest. If the Recipient requires such bonding after execution of the Contract, then Recipient wil( pay the reasonable cost of the bond premium. (a) The following situations may warrant a performance bond: 1. Recipient property or funds are to be provided to the Contractor for use in performing the contract or as partial compensation (as in retention of salvaged material). 2. A contractor sells assets to or merges with another concern, and the Recipient, after recognizing the latter concern as the successor in interest, desires assurance that it is financially capable. 3. Substantial progress payments are made before delivery of end items starts. 4. Contracts are for dismantling, demolition, or removal of improvements. (b) When it is determined that a performance bond is required, the Contractor shall be required to obtain performance bonds as fo(lows: l. The penal amount of performance bonds shall be 100 percent of the original contract price, unless the Recipient determines that a lesser amount would be adequate for the protection of the Recipient. 2. The Recipient may require additional performance bond protection when a contract price is increased. The increase in protection shall generally equal 100 percent of the increase in contract price. The Recipient may secure additional protecuon by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. Addendum, r'I~A Contract Requirements Page - l2 0223990116