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(b) Contracts involving public improvements. Prior to executing a <br />contract for more than $50,000 that includes the construction of a <br />public improvement, the contractor must deliver a payment bond <br />equal to the full contract price, solely for the protection of claimants <br />under ORS 279C.600. <br />(5) Design/Build Contracts. <br /> If the public improvement contract is with a <br />single person to provide both design and construction of a public <br />improvement, the obligation of the performance bond for the faithful <br />performance of the contract must also be for the preparation and <br />completion of the design and related services covered under the <br />contract. Notwithstanding when a cause of action, claim or demand <br />accrues or arises, the surety is not liable after final completion of the <br />contract, or longer if provided for in the contract, for damages of any <br />nature, economic or otherwise and including corrective work, attributable <br />to the design aspect of a design-build project, or for the costs of design <br />revisions needed to implement corrective work. <br />(6) Construction Manager/General Contractor Contracts. <br /> If the public <br />improvement contract is with a single person to provide construction <br />manager and general contractor services, in which a guaranteed <br />maximum price may be established by an amendment authorizing <br />construction period services following preconstruction period services, <br />the contractor shall provide the bonds required by subsection (1) of this <br />section upon execution of an amendment establishing the guaranteed <br />maximum price. The city shall also require the contractor to provide <br />bonds equal to the value of construction services authorized by any <br />early work amendment in advance of the guaranteed maximum price <br />amendment. Such bonds must be provided before construction starts. <br />(7)Surety; Obligation. <br /> Each performance bond and each payment bond <br />must be executed solely by a surety company or companies holding a <br />certificate of authority to transact surety business in Oregon. The bonds <br />may not constitute the surety obligation of an individual or individuals. <br />The performance and payment bonds must be payable to the city or to <br />the public agency or agencies for whose benefit the bond is issued, as <br />specified in the solicitation documents, and shall be in a form approved <br />by the purchasing agent. <br />(8) Emergencies. <br /> In cases of emergency, or when the interest or property <br />of the city probably would suffer material injury by delay or other cause, <br />the requirement of furnishing a good and sufficient performance bond <br />and a good and sufficient payment bond for the faithful performance of <br />any public improvement contract may be excused, if a declaration of <br />such emergency is made in accordance with the provisions of section <br />2.1430(7)(c), unless the city council requires otherwise. <br />2.1445 Public Contracts - Electronic Advertisement of Public Contracts. <br />In lieu <br />of publication in a newspaper of general circulation in the Eugene/Springfield <br />metropolitan area, the advertisement for an invitation to bid or request for <br />Ordinance - 13 <br /> <br />