The Contract, however, should provide for changes and corrections. If there are extensions, alterations, or additions which virtually make a new Contract, the proper way is to secure the written "consent" of the surety. This consent will be to a specific change in the Contract, and ought to hold. It might well be a question whether the provision shown above would be effective in case the Contract was very materially changed, to the extent, perhaps, of making a new Contract in some features.

The form shown below has points both of similarity and of difference in comparison with the other forms shown:

H.

BOND TO ACCOMPANY THE CONTRACT

Know all Men by These Presents,

That we,...

as principal, and the

duly authorized to transact business in Massachusetts, and having an office at

as surety, are held and firmly bound unto the City of Boston, in the sum of . . . . . . ....dollars ($..........) to be paid the City of Boston, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

This Obligation is upon the Condition that if the party to the contract hereto annexed, other than the City, shall faithfully furnish, keep and do everything therein required of the party on his part to be furnished, kept and performed, and shall also pay for all labor performed or furnished, and for all materials used in the carrying out of said contract, and shall indemnify the City and the Commission for any failure so to do, as provided in Section 23, Chapter 514 of the Acts of 1909 and amendments thereof, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and virtue.

The bond is to remain in force two years after the completion of the contract and if legal proceedings are then pending against the City or the Commission alleging injury to person or property in the performance of this contract or have then been brought by the City or the Commission against the Contractor said bond shall remain in force until payment to the City or the Commission of the amount with interest of any judgment rendered therein.

In Witness Whereof, we hereunto set our hands and seals this .....day of. . . . . .

in the year nineteen hundred and sixteen.

(SEAL)

There is considerable question as to the advisability of putting any time limit on the Bond. The risk is mainly a function of the size and quality of the Contract rather than of the time consumed in executing it, and the charges of the surety company are properly rated accordingly. As has been stated the premium is now rated upon the amount of the Contract.

The following form of Bond is much more elaborate than any of the preceding forms:

1.

CONTRACTOR'S BOND

Know all Men by These Presents,

That we

and....

.as principal, as surety,

are held and firmly bound unto The Sanitary District of Chicago in the penal sum of Three Thousand Dollars ($3000) lawful money of the United States, for the payment of which sum of money well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

Sealed with our hands and seals and dated this...

The Condition of the Above Obligations is Such that whereas the above bounden ....

...day of..

has entered into a certain contract with The Sanitary District of Chicago, bearing date the... .....A.D. 1916, for doing all the work and furnishing all the materials, tools, labor, appliances and appurtenances necessary for The Furnishing, Fabrication, and Delivery of the Metal Work for the Superstructure of a Double Track Bridge at the Crossing of the Chicago and Joliet Electric Railway Over the Calumet-Sag Channel of the Sanitary District of Chicago at Lambert Station, in the Township of Lemont, County of Cook, State of Illinois.

Now, if the said.....

shall in all respects well and truly keep and perform the said contract on his part in accordance with the terms thereof, and specifications therein contained and the plans thereto attached, and in the time and manner therein prescribed, and further, shall protect, indemnify, keep and save harmless The Sanitary District of Chicago against all liabilities, judgments, costs, damages, expenses and attorney's fees, which may in anywise come against said The Sanitary District of Chicago in consequence of the awarding of such contract, or which may in anywise result from the carelessness or neglect of said...

or his agents, employees or workmen, in any respect whatsoever, or which may result on account of any infringement of any patent by reason of the materials, machinery, processes, devices or apparatus used or furnished in the performance of said contract, and moreover shall pay to said The Sanitary District of Chicago any sum or sums of money determined by the Engineer to be due said The Sanitary District of Chicago by reason of any failure or neglect in the performance of said contract, and shall pay all valid claims and demands whatsoever, including all valid claims and demands for first aid, medical, surgical and hospital services and for compensation for accidental injuries or deaths, under the provisions of the Act of the General Assembly of the State of Illinois entitled "An Act to promote the general welfare of the people of this State by providing compensation for accidental injuries or death suffered in the course of employment within this State; providing for the enforcement and administering thereof, and a penalty for its violation, and repealing an Act entitled 'An Act to promote the general welfare of the people of this State by providing compensation for accidental injuries or death suffered in the course of employment,' approved June 28, 1913, in force July 1, 1913, as amended

by an Act of the State of Illinois, in force July 1, 1915, which may accrue to each and every person who shall be employed by said....

...in or about the performance of said contract or which shall accrue to the beneficiaries of any such person, then is this obligation to be null and void, otherwise to remain in full force and effect.

And it is Hereby Expressly Understood and Agreed, and made a condition hereof, that any judgment rendered against said The Sanitary District of Chicago, as aforesaid, in any suit for damages occasioned by carelessness or neglect of said............

or his agents, employees or workmen in the premises, and also that any judgment of any court or award of any Board of Arbitrators or of the State Industrial Board of the State of Illinois rendered against said The Sanitary District of Chicago in any suit or claim arising under the said Act of the General Assembly of the State of Illinois, approved June 28, 1913, in force July 1, 1913, as amended by an Act of the General Assembly of the State of Illinois, in force July 1, 1915, relating to compensation for accidental injuries or deaths suffered by employees, in the course of their employment, when notice of the pendency of such suit, hearing or arbitration shall have been given said.....

shall be conclusive against each and all parties to this obligation, as to amount, liability and all other things pertaining thereto.

It will hardly be profitable to extend the discussion by including additional forms.

In some New York Contracts, the Contractor is allowed to deposit cash or securities instead of filing a Bond. A Contractor who owns sufficient securities to satisfy the Board, is thus relieved of the fee to the surety company while the City is fully protected. Such a provision is shown below.

J. Article XXVIII. The Contractor may at his option deposit with the Comptroller in lieu of said bond or of any part thereof, an equal amount in cash or in value of securities. If securities be deposited they shall be securities of which a schedule shall be hereto annexed, entitled Schedule of Securities, and there shall be deposited with them the written approval of the Commission which it shall give when satisfied as to the character thereof. In case any of the securities so deposited shall, in the opinion of the Commission, at any time cease to be of the character of securities in which the savings banks of the State of New York are then authorized by law to invest moneys, or shall, in the opinion of the Commission, at any time become of less value than the value stated for it or them in the said schedule, then within ten days after notice to the Contractor of the objection of the Commis

sion, the Contractor shall either substitute therefor securities which shall be approved by the Commission as of the character aforesaid and as being of at least the value of the former securities to which the Commission shall have objected as such value was originally stated in the said schedule, or shall deposit with the Comptroller in cash the amount of such value of such former securities as so originally stated. In case the Contractor shall not within such ten (10) days or such further time, if any, as the Commission may grant substitute such new securities or make such deposit of cash, he shall, if the Commission so elect, be deemed to be in default in the performance of his obligation under this contract; and in addition to any and all other remedies against the Contractor or his sureties, the Commission may require the Comptroller to deduct from any moneys then due or which thereafter may become due to the Contractor under this contract, the amount of the original valuation of such securities objected to, and to hold such amount in lieu of such securities, as if part of the original deposit or as if deposited with the Comptroller aforesaid, and such amount shall in such case be deemed to be paid to the Contractor upon this contract. The securities so objected to shall upon such substitution of securities or deposit of cash in lieu thereof be returned to the Contractor. The City shall from time to time collect all interest, dividends or other profits or income on any securities deposited by the Contractor, and shall, when and as collected, pay the same to the Contractor. If the securities are in the form of coupon bonds the coupons as they respectively become due shall be delivered to the Contractor. If the deposit be made in cash, interest shall be paid to the Contractor at the average rate of interest received by the City on its bank balances during such period. Provided, however, that the Contractor shall not be entitled to interest, dividends or other profits or income on any securities the proceeds of which shall be used or applied as hereinafter provided.

Article XXIX. The said deposit, whether in cash or securities, in the form and as the same shall at any time be, shall be security for the faithful performance by the Contractor of all the covenants, conditions and requirements specified and provided for in this contract. In case of any default on the part of the Contractor in such performance, and in the further case that the City shall for or by reason of such failure, whether by reason of employment of another contractor or contractors or otherwise, incur or become liable for expense through such default as hereinafter provided, then the Comptroller shall forthwith pay or apply to the use of the City the amount of such expense out of the said deposit in cash or securities or out of the portion of the deposit remaining at the time.

Article XXX. The Comptroller shall, upon the requirement of the Commission, in order to make such payment or application to the use of the City, sell at public auction in the City of New York any of the securities which may then constitute part of such deposit upon notice to be published in three daily newspapers, the first publication to be not less than ten (10) days before the sale and such publication to be made three times within such ten (10) days. Any such sale shall be adjourned from time to time if requested by the Commission. The Comptroller shall, upon the requirement of the Commission, deduct from the proceeds of any such sale, all expenses thereof and of such advertisement, and pay and apply to the use of the City so much of the residue of such proceeds as may be necessary for the purpose aforesaid. And the Contractor within ten (10) days after notice from the Commission so to do shall (unless the time be extended by the Commission) by further deposit, according to the requirement of the Commission, of money or securities of the character aforesaid approved by the Commission restore the said

deposit with the Comptroller to the full amount originally required. In addition to, or in lieu of, the sale above provided for, the Commission may, in the name of and in behalf of the City, bring any appropriate suit or proceeding in any proper court to enforce the lien and claim of the City in and upon the said deposit, whether such deposit be in money or securities.

Some forms provide that a surety Bond shall be furnished instead of the certified check, and the following form has been used:

K.

PROPOSAL BOND

In consideration of the premises, and of One Dollar to us and each of us in hand paid by The City of and of other good and valuable considerations, the receipt whereof is hereby acknowledged:

We, the undersigned, jointly and severally, consent and agree, that if the contract for which the preceding bid or proposal is made be awarded to the person or persons making the same, we will, upon its being so awarded, become bound as his or their or its sureties for the faithful performance of said contract; and if the said person or persons shall omit or refuse to execute such contract and give the proper security within ten days after written notice that the same is ready for execution, is so awarded, we will pay, without proof of notice or demand, to the City, any difference between the sum to which such person or persons would be entitled upon the completion of such contract, and the sum which the City may be obliged to pay to the person or persons to whom the contract shall be awarded at any subsequent letting; the amount in each case to be calculated upon the estimated quantities of work, labor and materials by which the bids are tested; provided, however, that the estimated amount under the subsequent letting be greater.

In Witness Whereof, we have hereunto set our hands, this.. day of..... ...one thousand nine hundred and....

(Note. Each and every surety must sign below and state his place of business or residence.)

No seal is shown here; apparently reliance is placed, in this form, upon "One Dollar......and other good and valuable considerations" as the consideration of the agreement, while in the other forms reliance is placed upon the seal.

In the form above there appears to be no limit to the liability incurred by the sureties, and most surety companies would probably be at some loss as to what charges to make for furnishing such a Bond.

Another form somewhat similar in its general features provides in case of failure to sign the Contract and furnish Bond:

.thousand dol

L. We bind ourselves, ......to pay......the sum of lars ($... .) as liquidated damages to reimburse said Board for expenses or delays incurred in making another letting for the construction of, etc.......and we do further bind ourselves to pay to said Board, the difference, not exceeding thousand dollars ($... .) between the amount of the accepted pro