117. The Bond.—The bond called for in the Information and Instructions for Bidders is bound in the pamphlet following the Contract. No uniform practice is followed in the amount of the bond required. It varies from 50 to 100 per cent of the contract price and may be stated as a lump sum before the contract price is known. There is a possibility that the Contractor may fail before he has commenced work and the City may be unable to procure another contractor to take up the work. The City should then be protected by a 100 per cent bond. Such a contingency is remote. The Contractor seldom fails until work is well under way, and other contractors are usually available, although the failure of one contractor tends to increase the bids of other contractors for the same work. In fixing the amount of the bond the judgment of the Engineer is called into play in order that the amount may be as low as possible in fairness to the Contractor, and high enough to protect the interests to the City. By reducing the amount of the bond the expense to the City is also reduced as the City ultimately must pay its cost.

Upon the acceptance of the bond and the execution of the Contract, the Engineer’s duties take him out of the designing office and into the construction field.