c. Contract approval - Laserfiche WebLink

1 The Contractor and Iha Surely. jointly and severally. bind them selves, their heirs, executors, adm inislrators, successors and assigns 10 the Owner for the perform ance of the Construction Contract, which is incorporated herein by relerence. 2 IIlhe Contractor perlorms the Construction Contracl. the Surely and Ihe Conlractor shall have no obligation under this Bond, except 10 participate in conferences as provided in Sub parag rap h 3.1. 3 II Ihere is no Owner Delaull, the Surety's obligalion under this Bond shall arise aller; 3.1 The Owner has notified the Contractor and the Surety al ils address describad in Paragraph to below thai the Owner is considering declaring a Conlraclor Delault and has requested and altern pted 10 arrange a conferenca with the Contractor and the Surely 10 be held not later Ihan 'filleen days after receipl of such notice to discuss melhods of per, forming Ihe Construction Contract. II the Owner. Ihe Conlractor and the Suraly agree, Iha Conlractor shall be allowed a reasonabla tim e to perform Ihe Construction Contract, but such an agreement shall nol waive Iha Owner', right, if any, eubsequenlly 10 declare a Conlraclor Defaull: and 3.2 The Owner has declared a Contractor Delaull and form ally lerm inaled the C ontraclor's righllo com plele the conlract. Such Contractor Default shall not be declared earlier than twenty day' aller Ihe Contractor and Ihe Surely have received notica as provided in Subparagraph 3.t; and 3.3 The Owner has agreed to pay Ihe Balance of the Contract Price to Ihe Surely in accordance with Ihe terms of the Construction Contract or to a contractor selected 10 perform the Construction Contracl in accordance wilh the terms of Ihe conlract wilh Ihe Owner. 4 When the Owner has SBtisfied the conditions of Paragraph 3.Ihe Surely shall prom plly and althe Surely's expense take one of the following actions: 4.1 Arrange lor Ihe Contractor, wllh consenl of Ihe Owner, 10 perform and com piela the Conslruclion Contracl; or 4.2 Underlake 10 perform and complete tha Con- struction Contract itself, 1hrough its agents or through independent conlr8clors; or 4.3 Oblain bids or negolialed proposals lrom qualified conlraclors acceplable to Ihe Owner lor a contract for perform ance and com pletion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and Ihe contractor selected with Ihe Owner's concurrence, to be secured with perform anee and paym ent bond. execuled by a qualified surely equivalentlo Ihe bonds issued on the Conslruction Contract, and pay 10 the Owner the am ount of da m ages as described in Paragraph 6 in excess of the Balance of the Contract Price incurred by the Owner resulting from Ihe Contractor's default; or ~.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable prom plness under Ihe circum stances: .1 After invesligation, determ ine Ihe am ount tor which it may be liable to the Owner and, as soon as practicable after the amount is determined, lender paym e.nl therefore to Ihe Owner; or .2 Deny liability in whole or in pari and nolify Ihe Owner citing reasons therefore. 5 If the surety does not proceed as provided in Para- graph 4 wilh reasonabie promplness, the Surety .hallbe deemed to ba in delaull on Ihis Bond filleen days afler receipl of an addilional written nolice from Ihe Owner 10 Ihe Surely demanding that Ihe Surety perlorm its obligalions under this Bond. and the Owner shall be entilled to enforce any remedy evailable to the Owner. If the Surely ploceeds as provided in Subparagraph U. and Ihe Owner refuses Ihe paymenl tendered or the Surety had denied liabilily. in whole or in part. withoul furlher nolice tha Owner shall be enlilled to enforce any rem edy available to Ihe Owner. 6 After the Owner has terminated the Conlractor's right 10 complete Ihe Conslruction Conlracl. and if the Surely elacl' to act under Subparagraph 4.1.~.2, or 4.3 above. Ihen the responsibilities 01 the Surely 10 Ihe Owner shall not be greater than those of Ihe Conlraclor under the Construction Contract, and the responsibililies of the Owner 10 Ihe Surely shall nol be greater than Iho," of Ihe Owner under the Construction Contract. To Ihe lim it of the amount of this Bond, but subject to commitment by the Owner of the Balance of the Conlracl Price to mitigalion of cosls and damages on the Construction Contract, the Surely is obligated without duplication for: 6,1 The responsibilities of Ihe Contraclor lor cor. rection 01 defective work and completion of Ihe Con. struction Contracl: 6.2 Additional legal. design prolessional and delay costs resulting from the Contractor's Default, and resulling from the actions or failure to act 01 Ihe Surety under Paragraph 4; and 6.3 Liquidaled dam ages, or il no liquidated dam ages are specified in Ihe Construction Contract, actual dam ages caused by delayed perform ance or non- performance of the Conlraclor. 7 The Surety ,hall nol be liable to Ihe Owner or olhers for obligations of Ihe Conlractor that are unrelaled to the Construction Contract. and Ihe Balance of Iha Conlract Price shall nol be reduced or sel olf on account of any such unrelated obligations. No right of action shall accrue on Ihis Bond to any person or entity other than Ihe 0 wner or its heirs, executors, adm inistrators or successors. 8 The 5 urety hereby waives notice of a ny change, inclu. ding changes of time, 10 Ihe Construction Contract or 10 related subcontracts, purchase orders and olher obli- gations. 9 Any proceeding, legal or equitable. under this Bond may be instituted in any court of com petent juriSdiction in the location in which the work or pari of the work is localed and shall be in,tiluled within two years aller Conlraclor Default or within two years after the Contractor ceased working or within two years. after the Surely refuses or fails to perform i1s obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the m.inimum period of limitation avail. CON 0387 (08/01) 2