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Performance Bonds

A performance bond is required on all projects in excess of $25,000 in the amount of 100 percent of the contract price.

Changes to the Law

There was a recent change in Baltimore County Code Title 4—Development Definition of Performance Security. New Security Bill 69-19 reads as follows:

AN ACT concerning Development Regulations—Performance Security

FOR the purpose of allowing a bond from a bonding company assure performance and completion of certain public or private improvements; authorizing the County to determine the acceptable bonds; and generally allowing the use of bonds as a performance security.

By repealing and reenacting, without amendments:

  • Section 32-4-101(a) Article 32. Planning, Zoning and Subdivision Control and Title 4
  • Development Subtitle 1. In General Baltimore County Code, 2015

By repealing and reenacting, with amendments:

  • Section 32-4-101(gg) Article 32. Planning, Zoning and Subdivision Control and Title 4
  • Development Subtitle 1. In General Baltimore County Code, 2015

SECTION 1. BE IT ENACTED BY THE COUNTY COUNCIL OF BALTIMORE COUNTY, MARYLAND, that the Laws of Baltimore County shall read as follows:

Article 32. Planning, Zoning and Subdivision Control § 32-4-101

(a) In this title the following words have the meanings indicated: (gg) "Performance security" means a letter of credit, cashier's check, BOND FROM A BONDING COMPANY OR FINANCIAL INSTITUTION ACCEPTABLE TO THE COUNTY, or cash delivered to the County to assure performance and completion of the public improvements or private improvements required in this title.

SECTION 2. AND BE IT FURTHER ENACTED, that this act shall effect 45 days from the date of enactment.

How to Apply

To request the use of a Performance Bond under this section, download and complete the Performance Bond Application (PDF) to print and submit along with your application for any new projects. Be sure to identify which agency the agreement type relates to:

  • Environmental Agreement—EA
  • Public Works Agreement—PWA
  • Right-of-Way Agreement—RA
  • Utility Agreement—UA

Application Processing

Applications are processed on a first-come, first-served basis. Processing time is dependent upon application volume, but will not surpass 60 days. The processing time will be evaluated every three months by the Office of Budget and Finance.

In the event that a contractor wishes to change the type of bond held on existing projects, a request must be submitted to the agency at least 60 days prior to the original bond's expiration.

 
Revised February 28, 2020         

 

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