Performance Bond (Online)

Description

This screen is part of the Surety Services subsystem and provides part of the Bond functionality. Before the contract for a project can be executed, the contractor must provide signed performance and payment bonds. This screen allows the contractor to select a Producer, a Bonding Agency, or a Surety Company and submit the project-related data to the producer for review. The producer accesses the Performance Bond to enter the NAIC number, bond amount, and other necessary data and sign the bond, whereupon the system sends an email notification to the Contractor. Once the Contractor signs the bond, it is updated to the appropriate Contract Management status, depending on the status of the project. If the project is in the awards process (Pre-Award or Award status), Bureau of Design Contract Management accepts the bond on behalf of PENNDOT. If the project is in Construction status, Bureau of Construction Materials Contract Management accepts the bond.

A bond may be rejected during either the Producer or CMD review. Rejected bonds may not be resubmitted but remain in the database for audit purposes.

The Performance Bond screen can be accessed in create mode by the Contractor from the “New Performance Bond” link on the Contractor Project Page. Producers and CMD users can access the bond from a link provided in the system generated email when a bond is ready for their review, or from the list of Payment and Performance Bonds available from the Bonds option under Surety Services on the navigation bar (Producers only) or from the Bonds link on the Contract Awards home page (BOD CMD users), or from the Go links on the Construction Project Information screen (BOCM CMD users).

Note: For projects let after the Electronic Bond Cutover Date (General System Code 97), both payment and performance bonds must be submitted, signed, and accepted online. Projects let prior to the cutover date use the hardcopy functionality “Project Addresses”.

For information on the hardcopy process, see the following documents:

Tell Me About:
-Performance Bond
-Payment Bond

How Do I…
-Print Performance and Payment Bonds – Blank
-Enter Surety or Insurance Information
-View Performance and Payment Bonds - Completed

Fields

Field Name	State	Description
Project Header	Display/Links	The Project header fields identify the project, including the Project Number (unique identifier for the project within ECMS), County, SR, and Section. The Project field provides a link based on the bullets below. The Project Team link takes the user to the Project Team screen (except for Producers – they are taken to an error page if they click this link). PENNDOT Users – Redirects user to the Project Information or Construction Project Information screen Contractors – Redirects user to the Contractor Project page Producers – Redirects user to the Construction Project Information screen
Bond Status	Display Only	This field shows the status of the bond.
Surety Company	Editable	The name of the surety company that is bonding the project. Selecting a company automatically removes any bonding agency and/or producer that were previously selected. If the Contractor chooses a specific Producer, the list of available surety companies is limited to those companies for whom the producer has power of attorney, and the selected Producer can choose the Surety Company for the bond during their review. This field is editable for the Producer ($ECMSBP BOND APPROVER) when the bond status is Producer Review and for the Contractor when the bond is in Draft status.
Bond Agency	Editable	The name of the bonding agency that is entering the bond information. Selecting a bonding agency will automatically remove any surety company and/or producer that were previously selected. This field is editable (by the Contractor) when the bond is in Draft status and is required if a specific producer has not been selected for the bond.
Producer	Editable	The name of the producer that is entering the bond information. If a company or bonding agency has already been selected, the list of producers is limited to those producers setup as having power of attorney for the surety company or as users (with $ECMSBP BOND APPROVER user group) under the surety company’s business partner ID. This field is required during contractor review if a surety company or bonding agency is not selected. It is required to be entered before it can be signed by the producer. All emails processed during workflow will be sent to the specific producer, if selected. Note: When emails are required but no Producer has been selected, the system sends the email notice to all users with the user group $ECMSBP BOND APPROVER for the specified Bonding Agency, or for all Producers having Power of Attorney for the specified Surety Company.
Bond Number	Editable	The bond number. This field is editable when the bond status is Producer Review and is required before the bond can be signed by the Producer.
Bond Amount	Editable	The amount of the contract that will be covered by the bond. The system defaults the value of this field to the original contract amount. However, the field is editable when the bond is in Producer Review status. Note: Before the contract can be executed, the sum of the bond amounts for all Payment Bonds in Accepted status must be equal to or greater than the Original Contract Amount. This rule is enforced by the Execute Rules program when the BOD CMD user attempts to execute the contract.
NAIC	Editable	The NAIC number for the surety agency. This field is editable when the bond is in Producer Review or BOD CMD ( or BOCM CMD) Review status. This field must be completed before the PENNDOT user can accept the bond.
Co-Insurer	Editable	This field allows the user to indicate whether the current bond is a co-insurer bond. This field is editable during Producer Review.

Actions

Action	Description
Back (button)	When the user clicks this button, they are returned to the previous document located in the browser’s history.
Edit (button)	When the user clicks this button, the screen is placed in edit mode. This button is available in read mode to the prime and joint venture contractor(s) when the bond is in Draft status, to the producer for an agency/surety company when the bond is in Producer Review and to BOD CMD/BOCM CMD when the bond is in BOD CMD/BOCM CMD Review.
Save (button)	When the user clicks this button, the information is saved to the database.
Submit (button)	When the user clicks this button, the information is saved to the database and the bond status is updated to Producer Review. This button is available in update mode to the prime and joint venture contractor(s) when the bond is in Draft status. The system automatically generates and sends an email to the specific user selected in the Producer field. If no specific producer is selected, the system sends the email notification to all producers (user group $ECMSBP BOND APPROVER) for the selected Bonding Agency or for all producers having Power of Attorney for the selected Surety Company (includes users for bonding agencies who are manually assigned via the Power of Attorney Maintenance function, as well as all users in the group $ECMSBP BOND APPROVER for the specific surety).
Sign (button)	This button is displayed when the bond is in Producer Review or Contractor Review status. It allows the Producer to sign the bond on behalf of the surety company (updating the status of the bond to Contractor Review), and it allows the Contractor to sign the bond on his/her company’s behalf (updating the status to BOD CMD or BOCM CMD Review). When the bond is signed, the system automatically generates and sends an email notification to the next user group in the workflow. For example, when the Producer signs the bond, the email is sent to the appropriate Contractor users, and when the Contractor signs the bond, the email is sent to the appropriate PENNDOT users.
Accept (button)	This button is displayed when the bond status is BOD CMD (or BOCM CMD) Review and the user is in the corresponding user group. When the user clicks this button, the status of the bond is updated to Accepted.
Reject (button)	This button is displayed when the bond status is Producer Review and BOD CMD (or BOCM CMD) Review and the user is in the corresponding user group. When the user clicks this button, they are prompted to enter rejection comments, and the status of the bond is updated to Rejected. Once rejected, the bond cannot be edited or resubmitted, but remains in the database for audit purposes. Rejected bonds can be viewed from the list of Payment and Performance bonds for the project, but are not displayed from the Surety link on the Contract screen. When the bond is rejected, the system automatically generates and sends an email notification to the contractor and the Producer.
Release (button)	This button is displayed to authorized PENNDOT users when the bond status is Accepted. When the user clicks this button, comments are captured and the status of the bond is updated to Released.
Rescind (button)	This button allows the Contractor to return the bond to Draft status when it is in Producer or BOD CMD (or BOCM CMD) Review status. This action does not generate any email notifications.
Delete (button)	This button allows the Contractor to delete a bond that is in Draft status.

Created by
Joseph D Howe/PennDOT on 03/16/2005 at 10:54:42 AM