(1) The Procurement Department, with the consent of the Law Department, may permit the reduction of a contractor's bond or the substitution of a new bond in smaller amount whenever a contractor has satisfactorily performed his basic obligation to perform duties of maintenance or repair as to work done or goods supplied.[10]

(2) Labor and Materials Bonds. The Procurement Department shall, in accordance with the Acts of June 22, 1931, P.L. 880 and P.L. 881, 53 P.S. §§ 523 et seq., require labor and materials bonds before work is commenced under any contract for the construction, erection, installation, completion, alteration, repair, or addition to, any public work or improvement of any kind where the amount of the contract is in excess of $1000.[11]