Section 3-122-224 - Contract performance and payment bonds(a) Performance and payment bonds shall be required for: (1) Construction contracts exceeding the limits of section 103D-305, HRS;(2) Goods and services contracts exceeding the limits of section 103D-305, HRS, when the head of the purchasing agency has secured the approval of the chief procurement officer; and(3) Federally funded contracts wherein the conditions of the funding requires a performance or payment bond or both.(b) The amounts of the performance and payment bonds, when required, shall be as follows: (1) For construction contracts, performance and payment bonds shall each be in an amount equal to one hundred per cent of the amount of the contract price;(2) For goods and services contracts, performance and payment bonds shall each be in an amount not to exceed fifty per cent of the amount of the contract price;(3) For contracts where contract price cannot be determined at the time of award, the amounts of the performance and payment bonds shall each be stated in the solicitation; and(4) For federally funded contracts, performance or payment bond or both shall each be in amount required by the terms of the federal funding.(c) The performance and payment bonds, if required, shall be delivered by the contractor to the State at the same time the contract is executed. If the contractor fails to deliver the required performance and payment bonds, the contractor's award shall be cancelled, the contractor shall be subject to a claim by the State for all resulting damages, its bid security shall be enforced, and award of the contract may be made to the next lowest offeror in accordance with subchapter 11.[Eff 12/15/95; am and comp 11/17/97; am and comp MAR 21 2008] (Auth: HRS §§ 103D-202, 103D-324) (Imp: HRS § 1030-324)