|
<br />1. Contractor and Surety, jointly and severally, bind themselves, their heirs,
<br />executors, administrators, successors, and assigns to Owner to pay for labor,
<br />materials, and equipment furnished by Claimants for use in the performance of
<br />the Contract, which is incorporated herein by reference.
<br />
<br />2. With respect to Owner, this obligation shall be null and void if Contractor:
<br />2.1. Promptly makes payment, directly or indirectly, for all sums due
<br />Claimants, and
<br />
<br />2.2. Defends, indemnifies, and holds harmless Owner from all claims,
<br />demands, liens, or suits alleging non-payment by Contractor by any
<br />person or entity who furnished labor, materials, or equipment for use
<br />in the performance of the Contract, provided Owner has promptly
<br />notified Contractor and Surety (at the addresses described in
<br />Paragraph 12) of any claims, demands, liens, or suits and tendered
<br />defense of such claims, demands, liens, or suits to Contractor aDd
<br />Surety, and provided there is no Owner Default.
<br />
<br />3. With respect to Claimants, this obligation shall be null and void if
<br />Contractor promptly makes payment, directly or indirectly, for all sums due.
<br />
<br />4. Surety shall have no obligation to Claimants under this Bond until:
<br />
<br />i
<br />- j
<br />
<br />4.1. Claimants who are employed by or have a direct contract with
<br />Contractor have given notice to Surety (at the addresses described in
<br />Paragraph 12) and sent a copy, or notice thereof, to Owner, stating
<br />that a claim is being made under this Bond and, with substantial
<br />accuracy, the amount of the claim.
<br />
<br />~
<br />i
<br />I
<br />I
<br />
<br />4.2. Claimants wbo do not have a direct contract with Contractor:
<br />
<br />,
<br />.1
<br />
<br />I. Have furnished written notice to Contractor and sent a copy, or
<br />notice thereof, to Owner, within 90 days. after having last
<br />performed labor or last furnished materials or equipment included
<br />in the claim stating, with substantial accuracy, the amount of the
<br />claim and the name of the party to whom the materials or
<br />equipment were furnished or supplied, or for whom the labor was
<br />done or performed; and
<br />
<br />2. Have either received a rejection in whole or in pan from
<br />Contractor, or not received within 30 days of furnishing the above
<br />notice any co=unication from Contractor by which Contractor
<br />had indicated the claim will be paid directly or indirectly; and
<br />
<br />.\
<br />i
<br />)
<br />
<br />3. Not having been paid within the above 30 days, have sent a
<br />written notice to Surety and sent a copy, or notice thereof, to
<br />OWner, stating that a claim is being made under this Bond and
<br />enclosing a copy of the previous written notice furnished to
<br />Contractor.
<br />
<br />5. If a notice by a Claimant required by Paragraph 4 is provided by Owner to
<br />Contractor or to Surety, that is sufficient compliance.
<br />
<br />6. When a Claimant has satisfied the conditions of Paragraph 4, the Surety
<br />shall promptly and at Surety's expense take the following actions:
<br />
<br />)
<br />
<br />6.1. Send an answer to that Claimant, with a copy to Owner, within 45
<br />days after receipt of the claim, stating the amounts that are undisputed
<br />and the basis for challenging any amounts that are disputed.
<br />
<br />6.2. Payor arrange for payment of any undisputed amounts.
<br />
<br />7. Surety's total obligation shall not exceed the amount of this Bond, and the
<br />amount of this Bond shall be credited for any payments made in good faith by
<br />Surety .
<br />
<br />J
<br />
<br />8. Amounts owed by Owner to Contractor under the Contract shall be used for
<br />the performance of the Contract and to satisfy claims, if any, under any
<br />performance bond. By Contractor furnishing and Owner accepting this Bond,
<br />they agree that all funds earned by Contractor in the performance of the
<br />Contract are dedicated to satisfy obligations of Contractor and Surety under
<br />this Bond, subject to Owner's priority to use the funds for the completion of
<br />the Work.
<br />
<br />9. Surety shall not be liable to Owner, Claimants, or others for obligations of
<br />Contractor that are unrelated to the Contract. Owner shall not be liable for
<br />payment of any costs or expenses of any Claimant under this Bond, and shall
<br />have under this Bond no obligations to make payments to, give notices on
<br />behalf of, or otherwise have obligations to Claimants under this Bond.
<br />
<br />10. Surety hereby waives notice of any change, including changes of time, to
<br />the Contract or to related Subcontracts, purchase orders and other obligations.
<br />
<br />11. No suit or action shall be co=enced by a Claimant under this Bond other
<br />than in a court of competent jurisdiction in the location in which the Work or
<br />pan of the Work is located or after the expiration of one year from the date (1)
<br />on which the Claimant gave the notice required by Paragraph 4.1 or Paragraph
<br />4.2.3, or (2) on which the last labor or service was performed by anyone or
<br />the last materials or equipment were furnished by anyone under the
<br />Construction Contract, whichever of (1) or (2) first occurs. If the provisions
<br />of this paragraph are void or prohibited by law, the minimum period of
<br />limitation available to sureties as a defense in the jurisdiction of the suit shall
<br />be applicable.
<br />
<br />12. Notice to Surety, Owner, or Contractor shall be mailed or delivered to the
<br />addresses shown on the signature page. Actual receipt of notice by Surety,
<br />Owner, or Contractor, however accomplished, shall be sufficient compliance
<br />as of the date received at the address shown on the signature page.
<br />
<br />13. When this Bond has been furnished to comply with a statutory requirement
<br />in the location where the Contract was to be performed, any provision in this
<br />Bond conflicting with said statutory requirement shall be deemed deleted
<br />herefrom and provisions conforming to such statutory requirement shall be
<br />deemed incorporated herein. The intent is that this Bond shall be construed as
<br />a statutory Bond and not as a common law bond.
<br />
<br />14. Upon request of any person or entity appearing to be a potential
<br />beneficiary of this Bond, Contractor shall promptly furnish a copy of this Bond
<br />or shall permit a copy to be made.
<br />
<br />15. DEFINITIONS
<br />
<br />15.1. Claimant: An individual or entity having a direct contract with
<br />Contractor, or with a first-tier subcontractor of Contractor. to furnish
<br />labor, materials, or equipment for use in the performance of the
<br />Contract. The intent of this Bond shall be to include without
<br />limitation in the terms "labor, materials or equipment" that pan of
<br />water, gas, power, light, heat, oil, gasoline, telephone service, or
<br />rental equipment used in the Contract, architectural and engineering
<br />services required for performance of the Work of Contractor and
<br />Contractor's Subcontractors, and all other items for which a
<br />mechanic's lien may be asserted in the jurisdiction where the labor,
<br />materials, or equipment were furnished.
<br />
<br />15.2. Contract: The agreement between Owner and Contractor identified on
<br />the signature page, including all Contract Documents and changes
<br />thereto.
<br />
<br />15.3. Owner Default: Failure of Owner, which has neither been remedied
<br />nor waived, to pay Contractor as required by the Contract or to
<br />perform and complete or comply with the other terms thereof.
<br />
<br />FOR INFORMATION ONLY - Name, Address and Telephone
<br />Surety Agency or Broker:
<br />Owner's Representative (engineer or other party):
<br />
<br />00615-2
<br />
|