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<br />I. The Contractor and :he Surely. jointly 1n 'cr3tly. bind themselves.
<br />,hair Fleas, executor%. 3001111st=01's, succts. ind assigns to the Owner
<br />for the Qertvrmanec of the Construction Contract, which is Incorporated
<br />herein ay reference.
<br />2. If the Contractor performs the Construction e4,ilract, the Surely and
<br />I the Contraeror shall have no Obligation under this Bond, c!tccpt to par•
<br />ticepate in cenicrenecs as provided in Subparagraph 3.1.
<br />3. 11 there is no Owner Default. the Surety's obligation under this Bond
<br />Shall arise lftcr:
<br />f 3.1. The Owner has notified the Contrcclar and the Surety at its address
<br />descriaed in Paragraph 10 below. 111x1 the Owner �s considering
<br />declaring a Contractor Default and has requested and attempted
<br />to arrange a conference with the Contractor and the Surety to be
<br />held not later than fifteen days after receipt a( such notice to
<br />discuss mcihads of performing the Construction Contract, If the
<br />Owner. the Contractor and the Surety agree, the Contractor shall
<br />be allowed a reasonablc time to perform the Consim0on Con-
<br />tract. but such an agreement shall not waive the Owner's right, if
<br />any, subsequently to declare a Contractor D'cfault, and
<br />3.2. The Owner has declared a Contractor Default and formally ter-
<br />minuted the Contractor's right to complete the contract. Such
<br />Contractor Default shall not be declared earlier than twenty days
<br />after the Contractor and the Surety have received notice as pro-
<br />vided in Subparagraph 3.1: and
<br />3.3. The Owner has agreed to Pay the Balance of the Contract Price
<br />to the Surety in accordance with the Terms of the Construction
<br />Contract or to a contractor selected to perform the Construction
<br />Contract in accordance with the terms of the contract with the.
<br />Owner.
<br />4. When the Owner has salis6ed the conditionsaf Paragraph 3. the Surety
<br />Shoji promptly and at the Surety's expense take One df the fallowing
<br />actions:
<br />4.1. Arrange fartbe Contcactor, with consent of the Owner, to perform
<br />and complete the Construction Contract; or
<br />4,2. Undertake to perform and complete the Construction Contract
<br />itself, through its agents or through independent contractors. or
<br />4.3. Obtain bids or negotiated proposals from qualified contractors
<br />acceptable to the Owner for a contract for performance and com-
<br />pletion of the Construction Contract, arrange for a contract to be
<br />prepared for execution by the Owner and the contractor selected
<br />with the Owner's caneurrcnce. to be secured with performance
<br />and payment bonds executed by a qualified surety equivalent to
<br />the bonds issued an the Construction Contract, and pay to the
<br />Owner the amount of damages as desi;ribcd in Paragraph 6 in
<br />excess of the Balance: of the Contract Price incurred by the Cv ncr
<br />resulting from the Contractor's default: or
<br />4.4. /Naive its right to perform and complete, arrange for completion,
<br />or obtain a new contractor and with rcasanabla promptness under
<br />the circumstances.
<br />I. After investigation. determine the amount for which it maybe
<br />liable to the Owncrand. as soon as practicable after the amount
<br />is determined, tender payment therefor to the Owner. or
<br />2. Deny liability in whole or in pan and i;o:::y the Owner citing
<br />reasons therefor.
<br />S. if the Surety does not proceed as provided in Paragraph 4 with reason-
<br />able promptness, the Surety shall be deemed to be in default an this Bond
<br />fifteen days alter receipt a( an additional written notice from the Owner
<br />to the Surety demanding that the Surety perform its obligations under this
<br />Bond, and the Owner shall be entitled to enforce any remedy available to
<br />the Owner. If the Surety proceeds as provided in Subparagraph 4,4, and
<br />the Owner refuses the payment lenderedarrhcSurety hasdcnicd liability,
<br />in whole or in pan, without further notice the Owner shall be entitled to
<br />enforce any remedy available to the Owner.
<br />6, After the Owner h trminated the Contractor s right to complc._ the
<br />Cunslruction Contra rd i( the Surety cleats to act under Suboara¢raph
<br />4.1.4.2, or 4.3 above, ,nen the responsibilities of the Surely to the Owner
<br />shall not be greater Ihan those of the Contractor under the Construction
<br />Contract, and the responsibilitics of the Owner to the Surety snail not be
<br />grcater than those of the Owncr under the Construction Contract. To the
<br />limit of the amount of this Bond, but subject to commitment by the Owncr
<br />or the Balance of the Contract Price to miugation of costs and damages
<br />on the Construction Contract, the Surety is obligated without duplication
<br />(a r:
<br />6.1. The responsibilitics of the Contractor for correction Or defective
<br />work and completion of the Construction Contract,.
<br />6.2. Additional legal„ design professional and delay costs relulung
<br />from the Contractor's Default. and resulting from the acticns or
<br />failure w act of the Surety under Paragraph 4t and
<br />6.3. Liquidated damages, or if no liquidated damages are spccined in
<br />the Constriction Contract, actual damages caused by delayed
<br />performance or non-performance of the Contractor. l
<br />7, The Surety shall not be liable to the Owner or others for obligations of
<br />the Contractor that are unrelated to the Construction Contract, and the
<br />Balance of the Contract Price shall not be reduced or set off on account
<br />of any such unrelated obligations. No right of action shall accrue on this _
<br />Bond to any person or entity other than the Owner or its heirs. executors,
<br />administrators, or successor%.
<br />g. The Surety hereby waives notice of any change, including changes of
<br />time. to the Construction Contract or to related subcontracts, purchase
<br />orders and other obligations.
<br />9, Any proceeding. legal or equitable, under this Bond may be instituted
<br />in any court of competent jurisdiction in the location in which the work
<br />or pan of the work is located and shall be instituted within two years after
<br />Contractor Default or within two years after the Contractor ceased work-
<br />ing or within Iwo years after the Surety refuses or fails to periOM its
<br />obligations under this Bond, whichever occurs first. If the provisions of
<br />this Paragraph tie void or prohibited by law.. the minimum period of
<br />limitation available to sureties as a defense in the jurisdiction of the suit
<br />shall be applicable.
<br />10. Notice to the Surely, the Owner or the Contractor shall be mailed or
<br />delivered to the address shown on the signature page.
<br />11. When this Bond has been furnished to comply with a. statutary or
<br />other legal requirement in the location where the eanslfbotion was to be
<br />performed. any provision in this Bond conflicting with said salutary or
<br />legal requirement shall be deemed deleted herefrom and provisions con-
<br />forming to such statutory or other legal requirement shall be deemed
<br />incorporated herein. The intent is that this Hand shall be construed as a
<br />statutory bond and not as a common law band.
<br />12. Definitions.
<br />12.1, Balance of tht Car1rract Price: The total amount payable by the
<br />Ownerto the Contractoruader the Construction Contnctafter
<br />all proper adjustments have been made, including allowance to
<br />the Contractor or any amounts received or to be received by
<br />the Owner in settlement of insurance or other claims for dam-
<br />ages to which the Contractor Is entitled. reduced by all valid
<br />and proper payments made to or on behalf of the Contractor
<br />under the Construction Car.Lr-.t.
<br />$2.2. Construction Contract: The agreement between the Owner and
<br />the Conuaesor identified an the signature page, including all
<br />Contact Documents and changes thereto.
<br />12.3. Contractor Default: FailureoftheContracrar,which has neither
<br />been remedied nor waivcd. to perform or otherwise to comply
<br />with the terms of the Construction Contract.
<br />12.4, Owner Default: Failure of the Owner, which has neither been
<br />remedied nor waived, to pay the Contractor as required by the
<br />Construction Contract or to perform and complete of comply
<br />with rhe other terms thereof..
<br />A TRUE Wil
<br />Ci~APiIFICATM ON LAST ME,
<br />J.4L MWONa CLARK
<br />(FOR INFORMATION ONLY —Nizt le. Address and Telephone)
<br />AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect. Engineer or other patty):
<br />BROWN & BROWN. INC,
<br />RO. BOX 1228 -
<br />8131226-1311
<br />9Z+ I NNE 180
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