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price. The Recipient may secure additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. (c) A payment bond is required only when a performance bond is required, and if the use of payment bond is in the RecipienPs interest. (d) When it is determined that a payment bond is required, the Contractor shall be required to obtain payment bonds as follows: 1. The penal amount of payment bonds shall equal: (i) Fifty percent of the contract price if the contract price is not more than $1 million; (ii) Forty percent of the contract price if the contract price is more than $1 million but not more than $5 million; or (iii) 'Itvo and one half million if the con[ract price is inc~eased. Advance Payment Bonding Requirements The Contractor may be required to obtain an advance payment bond if the contract contains an advance payment provision and a performance bond is not furnished. The Recipient shall determine the amount of the advance payment bond necessary to protect the Recipient. Patent Infringement Bonding Requirements (Patent Indemnity) The Contractor may be required to obtain a patent indemnity bond if a performance bond is not furnished and the financial responsibility of the Contractor is unknown or doubtful. The Recipient shall de[ermine the amount of the patent indemnity to protect the Recipient. Warranty of the Work and Maintenance Bonds (Construction Contracts) 1. The Contractor warrants to Recipient, the Architect and/or Engineer that all materials and equipment furnished under this Contract will be of highest quality and new unless otherwise specified by Recipient, free from faults and defects and in conformance with the Contract Documents. All work not so conforming to these standards shall be considered defective. If required by the Recipient, the Contractor shall fumish satisfactory evidence as to the kind and quality of materials and equtpment. 2. The Work fumished must be of first quality and the workmanship must be [he best obtainable in the various trades. The Work must be of safe, substantial and durable construc[ion in all respects. The Contractor hereby guarantees the Work against defective materials or faulty workmanship for a minimum period of one (1) year after Final Payment by Recipient and shall replace or repair any defective materials or equipment or faulty workmanship during the period of the guarantee at no cost to Recipient. As additional security for these guarantees, the Contractor shall, pnor to the release of Final Payment, furnish sepazate Maintenance (or Guarantee) Bonds in form acceptable to Recipient written by the same corporate surety that provides the Performance Bond and Labor and Material Payment Bond for this Contract. These bonds shall secure the Contractor's obligation to replace or repair defective materials and faulty workmanship for a minimum period of one (1) year after Final Payment and shall be written in an amount equal to ONE HLJNDRED PERCENT (100%) of the CONTRACT SUM, as adjusted (if at all). Davis-Bacon Act (1) Minimum wages -(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the Addendum, FPA ConVact Requiremen[s Page- (3 0318971157