|
4D
<br />r
<br />1 ion' Contractor and the MpiOv. 1;oio0v and ?ev(�ralh
<br />hind themselves. their heirs, executors. adnnni%irators
<br />° +uccessorti and assit!_ns to the Ovvuvr tnr Ilte perltlrmainl t,
<br />of She Conslrutlo n ( ontract. whrs'h i4 mi nrl)orated hervin
<br />by ret e ten e.
<br />t 2 II the ( Irriirattol t)erroFms the (..nllslru( join ( onlratI
<br />the Suret, and the C Unlratlllr shall h,lvt' 110 111)1114311011
<br />under This lion[]. ev(epl to parllcipate in t oolerenr es ,I -
<br />provided in ?uhparatuaph 3.1.
<br />3 11 there r, no Ownttr 0elault. tilt= Surely s 111014,111011
<br />under this Bond shall arise alley:
<br />3.1 The Owner has nohlied the (:orltratlot and the•
<br />Surety at its address de5CFIbe(l In 1laraLUJI)h II) hellAv
<br />Thal the Owner is considering decl,inne a ( onlra(lor
<br />Detaull and has requested and attempted In arrange a
<br />conference wilh the C:onlrattor and tho surety it, Ito
<br />held not tater than tmeen days aner retelpt III su(It
<br />notice to discuss methods of perlorming the C:onslrut -
<br />lion Contract. If the Owner. Ihe Contractor and the
<br />Surely agree, tilt, Contractor shall be allowed a reason-
<br />able time to pertnrrrt the Construction Contract, but
<br />such an agreement shall not waive the Owners rn;ht. it
<br />any, subsequently to declare a Contractor Default: and
<br />3.2 The Owner has declared a Contractor Default anti
<br />formaliv terminated the Coniraclor's right In ( otnplete
<br />the contract. Such Contractor Default shall nml be de-
<br />clared earlier than twenty days atter the Contractor and
<br />the Suretv have received notice a'. provided in Sub-
<br />paragraph 3.1; and
<br />3.3 The Owner has agreed to pay [he Balance a1 the
<br />Contract Price to the Surety in accordance with lilt,-
<br />terms
<br />heterms of the Construction Contract or to a contractor
<br />selected to perforin the Cunstructlon Conlra(t in accor-
<br />dance with the terms of the contract with the Owner -
<br />4 When the Owner has satisfied the conditolns o1 Para-
<br />graph i. The Surety �,haii promptly and at the MUM" e,-
<br />pense take one of the following achons:
<br />4.1 Arrange olr the Contractor, with tnrl,erll III tho
<br />Owner, to penorm and complete the COFISIFLIttl0o
<br />Contrarl; or
<br />4.2 Undertake to pertorm and complete IhVk_L)nSlrnt-
<br />hon Contract itself. through its agents or through
<br />inde-pendent contractors: or
<br />�. 4.3 Obtain bids or negotiated propos-lk Irom
<br />qualified contractors acceplabfe to it)(,(hvner ror .1
<br />contract for performance and complet:oo or Ihe Curl -
<br />1+ struchon Contract, arrange lot i contract to he pre-.
<br />Il pared for execution by Ihe Owner and the contractor
<br />selected with the Owner s cnncurrent'l., to he set ured
<br />with nerklnnance and pavrrlent ponds vxeruted lir a
<br />quad+lied Suretv equivalent m 1111. hon(h Issued ort [he
<br />construction Contract. in(] pal• to We Owner lilt'
<br />arnount of (]anlages as describl.d in t',tragraph 11 to 141•
<br />ceps to Ihe 13.11.111c I. ar Ihe Cun4ract PTit e int orad he iIw
<br />Own, resuhing Irom the Contractors rlelatdl: 41
<br />k 4.4 Wmvv 0, right to perloun and torlopleh•. ittalwv
<br />fur complMion, or oblatn ,I new runlractor anti %%iIli
<br />reasonahte promptness under the (Ir(unlstantes:
<br />-1 Alter htvesllgahon. determine Ihe arnotoll for
<br />%viltt'h it rnjv tip Il.lt'1le tri tit- I)vvner and. as
<br />.00n as ora(ucahli• aver Ihe amount iN deter-
<br />ololvd. t "icier pd%inufrt rtleretor to the
<br />Owner; ur
<br />.2 Dl-Ily hahlhh III v%hote 0r In daft and nahty the
<br />Owner I.nln14 Fea,on, rherernr.
<br />a h the ?l1rL'ty' dlli`s r11111TIn[ I'Pll as prnvult-ti ut Paragraph
<br />yvdtt re3snn,tl)Ie prumplrll.,s. Iht• Suretv shall he deemed
<br />rn t)c In detauh t)n this limed nnl.en clays atter re('elpt t)r an
<br />additional wnitf n nrlllce tram Ilse Owner to the Surely
<br />demanding that Ihe ` ireiv penorm os ohlleations under
<br />this Bond. and the O(vner ,hall he entoleu Ili ernorce anv
<br />remedy a%ailabte ill tale (honer. It Ihe murvi% proceeds as
<br />provided In Subparagraph J. -I and the I)iner reluses Ihe
<br />pavme nl tendered or the SUrt-ly ha, (I(•nied hab lily. In
<br />whole or 111 paft, %vithout lurther notice Me Owner shall be
<br />1111SlNed to t-nt(/r(e anv remedy available to the owner.
<br />6 Aller the Owner [las tL•nnrnated the Contractor 5 right
<br />to complete the Construction Contracl. and it the Surety
<br />elects to act under r,ubparagraph 4.1, 4.2. or 4.3 above.
<br />Then the respopi0mlihes of the Suretv to the Owner shall
<br />not I)e greater than those 0i Ihr Conuactor under the
<br />Conslruciron Contract, and the responsibilities of the
<br />Owner to the Surely shall not be greater than those of the
<br />Owner under theConslruction Contracl. To the limit of the
<br />amount tit this Bnml. but subject to commitment by the
<br />Owner w Ihe Balance' of IN- Contract Price to niHigation of
<br />costs and damageson the Construction C nnlract, the Sure-
<br />tv Is ohtfgaled %vldtout duplication Irrr:
<br />6,1 The responsibihhes of the Contractor lot correc-
<br />lfon of defeclivework and completion of the Construc-
<br />tion Contract;
<br />6.2 Additional legal, design professional and delay
<br />costs resulting Irian the Contractor's Default, and re-
<br />sulting Irom the 100115 of iaiture to act of the Surety
<br />under Paragraph •1; and
<br />6.3 11(luldateti dlnla(;es, or it no liquidated damages
<br />,Ire specined in the Curutru(n(al t.ortlrat f. actual dam-
<br />ages caused by delayed perrnrmame or non-pertor-
<br />mance of the C.onlra('tor.
<br />i -1 he titrrt•h• %hall not he Irahle to the Oi tier or whers for
<br />iibligahon, til lilt- Cant rat for I[wl ,irk- uorrfaled it) the Con-
<br />,truction Con tracII ,o(I lilt• B,ilankr of the Contract Price
<br />,Rall not he reduced tri ,el un nn att(tool tot any such
<br />unreimed obligations. No oght of as Iron shall accrue on
<br />this Bund to anv person tit t,nhty odu•r Than the Owner or
<br />Its heirs, executors, ,ldrnin l,t(alllrs or ,ill censors,
<br />8 the Surely herehv waive% tiollce of am I hange, includ-
<br />ing chanl;es 111 tone, to The CoFISIRA lion Contract or to
<br />related subcontracts. purchase orders and other obliga-
<br />tions.
<br />.1 Anv proct-e(Ih14. Ivg;al or equdable under this Bond
<br />may lie utslltuled In anv ( ourt of (ompelrnl lunsdicfiun In
<br />till. Int anon mwhl( IT ihr umrk or pari ml Ihe work 1, located
<br />an(! shall be irl,toutetl i•nhul hvu year, inur Contractor
<br />Itetault nr %vilhln tun %v,ir, and l' lilt, ( ,mlr.ulor ceased
<br />,lurkrn14oi within hyo yi%o iltvi the,wrrr uctusersor lath
<br />to pt•rrnrnl its obligations under than Bond. whichever oc-
<br />curs IIF?I. II Ihe provisions of till, T'ar,lgraph are void of
<br />prnhihtled by law the numnunn period of limbahan avail.
<br />
|