Municipal Public Works; Their Inception, Construction And Management

Cover Municipal Public Works; Their Inception, Construction And Management
Municipal Public Works; Their Inception, Construction And Management
Whinery, Samuel, 1845-
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In practice, in contracts for street-paving, the amount retained is usually some per centum of the whole cost of the work. In contracts requiring a guaranty for five years, the usual amount retained is ten per cent of the value of the contract. Assuming that the contractor will be governed by purely mercenary motives, he may be depended upon to make good the guaranty, and do all work necessary for its integrity, provided the cost to him of doing so will be less than the sum he will receive at t
...he expiration of the period. If, however, he finds that the cost of maintaining the work will exceed that sum, it will obviously be to his interest, aside from any question of business honor, or any care for his business reputation, to default, and unless the municipality has other surety in addition to the ten per cent retained, it will, as a rule, have no power to compel him to make good the guaranty.
It is evident, therefore, that the sum retained must be sufficiently large to insure that the contractor will find it to his interest to maintain the guaranty rather than to forfeit the money retained.


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