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<br />1 The Contractor and the Surety, jointly and severally, bind
<br />themselves, their heirs, executors, administrators, successors
<br />and assigns to the owner to pay for labor, materials and
<br />equipment furnished for use in the performance of the
<br />Construction Contract, which is incorporated herein by
<br />reference,
<br />
<br />2 With respect to the Owner, this obligation shall be null
<br />and void if the contractor:
<br />
<br />2.1 Promptly makes payment, directly or indirectly, for
<br />all sums due claimants, and
<br />
<br />2.2 Defends, indemnifies and holds harmless the Owner
<br />from claims, demands, liens and suits by any person or
<br />entity whose claim, demand, lien or suit is for the
<br />payment for labor, materials or equipment furnished for
<br />use in the performance of the Construction Contract,
<br />provided the Owner has promptly notified the Contractor
<br />and the Surety (at the address described in paragraph 12)
<br />of any claims, demands, liens or suits and tendered
<br />defense of such claims, demands, liens or suits to the
<br />Contractor and the Surety, and provided there is no
<br />Owner default.
<br />
<br />3 With respect to claimants, this obligation shall be null and
<br />void if the Contractor promptly makes payment, directly or
<br />indirectly, for all sums due.
<br />
<br />4 The Surety shall have no obligation to claimants under
<br />this bond until:
<br />
<br />4,1 Claimants who are employed by or have a direct
<br />contract with the Contractor have given notice to the
<br />Surety (at the address described in paragraph 12) and
<br />sent a copy, or notice thereof, to the owner, stating that a
<br />claim is being made under this Bond and, with
<br />substantial accuracy, the amount of the claim,
<br />
<br />4.2 Claimants who do not have a direct contract with the
<br />Contractor:
<br />
<br />.1 Have furnished written notice the Contractor and
<br />sent a copy, or notice thereof, to the Owner, within
<br />90 days after having last performed labor or last
<br />furnished materials or equipment included in the
<br />claim stating, with substantial accuracy, the amount
<br />of the claim and the name of the party to whom the
<br />materials were furnished or supplied or for whom the
<br />labor was done or performed; and
<br />
<br />.2 Have either received a rejection in whole or in
<br />part from the Contractor, or not received within 30
<br />
<br />days of furnishing the above notice of any
<br />communication from the Contractor by which the
<br />Contractor has indicated the claim wtll~ be paid
<br />directly or indirectly; and
<br />
<br />.3 Not having been paid within the above 30 days,
<br />have sent a notice to the Surety, (at the address
<br />described in paragraph 12) and sent a copy, or notice
<br />there9f, to the Owner, stating that a claim is being
<br />made under this Bond and enclosing a copy of the
<br />previous written notice furnished to the Contractor.
<br />
<br />5 If a notice required by paragraph 4 is given by the Owner
<br />to the Contractor or to the Surety, that is sufficient
<br />compliance,
<br />
<br />6 When the claimant has satisfied the conditions of
<br />paragraph 4, the Surety shall promptly and at the Surety's
<br />expense take the following actions:
<br />
<br />6.1 Send an answer to the claimant, with a copy to the
<br />Owner, within 45 days after receipt of the claim, stating
<br />the amounts that are undisputed and the basis for
<br />challenging any amounts that are disputed.
<br />
<br />6.2 Payor arrange for payment of any disputed
<br />amounts,
<br />
<br />7 The Surety's total obligation shall not exceed the amount
<br />of this bond, and the amount of this bond shall be credited
<br />for any payments made in good faith by the Surety.
<br />
<br />8 Amounts owed by the Owner to the Contractor under the
<br />Construction Contract shall be used for the performance of
<br />the Construction Contract and to satisfy claims, if any, under
<br />any Construction Performance Bond, By the Contractor
<br />furnishing and the Owner accepting this Bond, they agree
<br />that all funds earned by the Contractor in the performance of
<br />the Construction Contract are dedicated to satisfy
<br />obligations of the Contractor and the Surety under this
<br />Bond, subject to the owner's priority to use the funds for
<br />completion of the work.
<br />
<br />9 The Stirety shall not be liable to the Owner, claimants or
<br />others for obligations of the Contractor that are unrelated to
<br />the Construction Contract. The Owner shall not be liable for
<br />payment of any costs or expenses of any claimant under this
<br />Bond, and shall have under this Bond no obligations to
<br />make payments to, give notices on behalf of, or otherwise to
<br />have obligations to claimants under this Bond,
<br />
<br />AlA DOCUMENT A312 . PERFORMANCE BOND AND PAYMENT BOND, DECEMBER 1984 EDITION. AlA @
<br />THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE" N.W., WASHINGTON. D.C, 20006
<br />THIRD PRINTING. MARCH 1987
<br />
<br />S-4149 (7/99)
<br />
<br />A312-1984
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