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I. The C.inu,ci.ir ,nJ :he Suwy. j o intly l<lll 1cv,rillr .hn ,I 111,1111,h ~ 1
<br />their heirs, c:,.ccu1or1. JJmini,u:unn . ,ucccu,11 , :am.I :1,.u ,t1~., !o 1h-.: Own<1
<br />for 1hc pt:r1'onnancc oi 1hc Con,uuction Conu:,cL wluch I\ m c111 11111:11<lt
<br />hc1c1n by reference.
<br />!. IC 1hc Contr:ictor p(tfotms the Cum1iuc1ion <.:onll;\Cl. the S111c 1v ,1111
<br />1hc Contr:1c1or sh:1II have no ob1i1J11on umJcr 1h11 Ooml. ("."H'Cllt rn ,,::\1•
<br />1icipo.1c 1n conicrcnccs u pro.,,ickd in Subp::.1 a.11:tph l . I.
<br />l. I( there is no Owner Ocfoull . the Surc1y·, oblia:.uiou umie.r 1111\ ll1rnd
<br />1holl ari1c •her:
<br />}. I . The Owner h:u no1ificd lhc Con11::c1or :,mJ the S11t c1y at Hl add1<.11
<br />dcscribtJ in Par;l!tlPh 10 below . lhll lhc Owner :,, co11sidc1iot(
<br />dccl:ning 3 Cont~clOr Default J.nd h:u r~quc.11cd imJ ~nccnfHtd
<br />10 :irnn1c 1 conference with lhc Co111t;\Clor ~nd 1hc: S111 c1y IO h,:
<br />held not l:Hcr than fihccn d;1y1, :1(1u rccC'ip1 o ( such ,,o,icc: tn
<br />discun methods o( pcr!ormin1 1hc Cons1ruc1io11 Cc,nu:ict. If the
<br />Owner. the Conu.1c1or and 1hc S,ncty :igrc:c. the Conu:ictl'H ,h.,11
<br />be :,l1owcd a rc:non.lble time 10 perform the Constructitrn Con•
<br />u-acl. but ,uch in ag;rccmcn1.,hall n01 waive 1hc Owncr'1, liaht. ir
<br />.any, 1ubsequen1ly to decl:uc J Conu,:ic1or Default: :inO
<br />).?. The Owner has decl::ircd a Cor,u'Jctor Default :ind (01111::illy 1ct·
<br />min:itcd the Conuac1or's ri9hl to cC'lmplctc 1hc co11u:1c1. Such
<br />Contr.ittcr Dcfaull 1h•II not be declared earlier th•n 1wenty day,
<br />a(ler the Con1r.ictor and the Surety have rc:ccivc<l notice :n p10•
<br />vided in Subparagraph l.1: 2nd
<br />),). 1hc Owner hu •greed to pay the Balance of the Cur11r~<1 Price
<br />to the Surety in accordance whh the 1cmn or 1l1c Cons1111ction
<br />Contr:,cr or 10 a con1n.c1or selected to perform th'! Co11suuciio11
<br />Contr.ict in accordance with 1hc 1crnts o( the! co11C1:1ct wi1h tl1c
<br />Owner.
<br />4, When the Owner has u1islicd ,he conditio ns o( P;ui~r:iph ). th~ Surety
<br />sh:i.11 promptly and 11 the Surety·, c~pensc t3kc cue or the foltowin;
<br />2crlon$: ·
<br />-L l. Arnngc for 1hc Contr.1ccor. with conJcnt of the Owner. to perform
<br />and complete the Coniiruction Con1rac1; or
<br />4.?. Undcnakc 10 pcrionn a nd complc 1c the Coostruc1ion Comract
<br />itself, 1hrous:h i1s agen1s or through independent conu-:tctors: or
<br />4.l. Obtain bids or ncgotiotcd proposal! from quolified conu•<1or,
<br />accepublc to 1hc Owner for a conuact for pcrform:uicc and com•
<br />plction or the Construction Conn-Jct, an"lng-: ror a conuact to b~
<br />prepared (or c:u:.cu,ion by the Owner and lht conu;ic:tor ,elcc1ed
<br />wi1h che Owncr"s concurrence. to be J ecurcd wilh pe1fo1m.tncc
<br />and payment bonds c.1.ecutcd by a qu-:1li6cd surety equivalent 10
<br />the bonds i,sucd on the Consuuction Contract. :uu.l pay to l he
<br />Owner the amount o( d.a.m:tgcs n de.scribed in Parngr3ph 6 in
<br />excess of chc Dal:rncc o( lhc Co111nct Piicc incurred by 1hc Owner
<br />tcsuttine: Crom the Con1r.ctor', default: or
<br />4.4. \Vaivc iu right lo perform 2nd.cornplc 1c. ur.a.nac for c:omplc1ion,
<br />or ob1:lin a new contnc1or ~nd with reasonable promplnc.u under
<br />the circumst;:incu:
<br />I . After invutig:uion, detcnninc the amount Cor which it may be
<br />liable 10 the Owner :md. u soon :as practic3blc a her the arnoum
<br />is determined, te nder payment therefor to the Owner: or
<br />2. Deny liability in whole or i" part :anJ 1iG:i:;· :t:.;: Owner c:itfog
<br />rcasonJ therefor.
<br />,. lfthc Surety dou not procee;d :u provided in P2r31Jnph ◄ wi1h reuon•
<br />ab1c promp1ncss. the Surety 1hall be deemed IC\ be in de bull on 1hi1 Bond
<br />rit'tccn d.1y1 aftc~ receipt or :an additional wriucn notice from 1he Owner
<br />10 the Surety demanding thit the Surety perform iu obli patio111 under this
<br />Bond, and the Owner 3h1.II be entitled 1? enforce 111y ,cmed)' ivailablc to
<br />1hc Owner. IC the Surely proceed, u provided in Subp~1ascr"1ph .4.4, 1nd
<br />1hc Owner rd uses lhc p21ymen1 tendered or 1hc. Sure1y hu denied li1bili1y,
<br />in whole or in put. without (unhct no1icc 1he Owner shall be c:n1illcd to
<br />en!orcc ,ny remedy •Y>il•blc t o the Owner.
<br />6 ,\lift th'" (Jt,,:wr h:'H 1cr111m.uriJ 111--(,,IHl l.h ,,1, ) ntht IO COlllj)k!: 111,
<br />'7'1 111,111,c u un C1111 1t:1c1. J1HI ,I 1hc 511,,.,,.. (lc:cB I'> ;,c, unllt:r St1bO,UJtr:.lr'1
<br />.I I . I 1. Of •l • .l Jhovc. th cit Ille rC\ro nuh1h11c.s or the Surety IO \he Qy. 11i:.,
<br />,h~II 1101 h~ 1tc:ucr th:rn 01 0 1c 01 lhi: C ,>u111 c 101 under 1hc. ClHHlruciuo
<br />Cm111,,cL ;_11111 the rcsflOl11 ilJili1ie1 o( 1hc Ow11cr to (he Su1c1y tn:,111101 •_•,:
<br />~1c;,tr;r 1h:u11ho1t: o ( 1hc ()wnu 1,rnrlc:f ll1e Con\1ruc1ion ConHJ:CI . lo 1h-
<br />ii11111 of 1hc :u11oun1 0£1his Bonrl. bu1 su t·,-:r.1 u1 cor1uuumc:n1 by 1hc Owo~~
<br />Q( 1hc: D;il:rncc or the ContJJCt Puce 10 nu11q :uion oi co.us Jnd d:it:1:'lo1--:1
<br />011 lh'.: CtJnstruction Con 1nc1. 1hr. Surr.1y u obli3:ucd will1out dll plic111-on
<br />hH :
<br />f1. I. ~r ht ,e1po111ibili1ic1 or the Contr::>ctor for corrcc.1ion or ddc.c1iv,;
<br />'-'"Olk ;ind complction o( the Con,1rnc11011 Cont ~cl:
<br />f1 .~. Addi1io11:1I lc1al. dcsit:n profrs1iom1I Jnd dtlly cosu rc1ulllrt!
<br />(10111 the Contnctor·s Default. 10d rc1oltina from the :ic11c.:H or
<br />r.,ilurc 10 ;ict or the Sutcty Untkf l1:u11r:iph J; 2111d
<br />t, J . Liquidated, d::1111.tjtCS. or if no liquid:Hcd d:1111;111c1 arc s pcci1i~d in
<br />the Con,uuction ContrJct , Jc1u~I d:,111:11~, c:10,cd by dc!aycd
<br />rc1f o1111ance or non•pe 1fo1m:1ncc o( the Conu..,c1or. \
<br />1 ~ 1 h r. $111 cty sh:10 not be liable to 1hc Owm:r or 01hcr1 (or oblig;11ions r1f
<br />1hc Contr;"1c 1or th:u uc unrelated to 1he Consttuc:tion Cootnc1. ":11011 the
<br />n:tl,rncc o( the Con1ract Price shall no< be reduced or sci ofT on account
<br />o! •nY ,uch uruelatcd oblig.iion1. tlo righl of.,c1ion •h•II ,ccruc on 1hi1
<br />Rond to any pttson or entity 01hcr than the Owner or its hcirt, c.ucu1on.
<br />:ir1minisu.11on, or sui:cenon.
<br />8 . ·1 he Sure ly hereby w21 ive1 nolicc o ( any ch-.111gc. inctudina ch1n~e1 o f
<br />ri111c, to the Construc1ion Con1r21ct or 10 rc13tcd subcon1nc1S. purch:uc
<br />ordc:n Jnd ochc:r obli1a1io1u.
<br />9. Any procccdint, lcaal or equitable. under this Bond moy be in11i1urcd
<br />in :iny ci1urt or compctcn( jurisdic1ion in the location in which the work
<br />o r part o( the work is loc~tcd 1nd 1h:a ll b,: instituted within two yc:1n ihcr
<br />CorHr3ctor Dcfaull or within lWo yc:us ihcr the Contr1c1or ceased work•
<br />ing or within 1wo yea.rs after 1he Surety rcfutcs or fails tO pcrior.n its
<br />obliaations under this Bond. whichever occun fint. Uthe proviiions o(
<br />1hi, Par.ig.r.iph arc void or prohibited by law. 1hc minimum period o l
<br />limi1alion aVail3blc 10 1u1e1ies as a ddcnsc in 1hc jurisdiction o( the sui1
<br />,hall be •pplic,blc.
<br />IO. Notice 10 lhc Surety. the Owner or 1hc Contucror shall be m~ilcd o r
<br />dclivctcd IP the addrcs, shown on the 1iina1urc pogc.
<br />11. When this Bond has been lumi1hcd 10 comply with a 1mu1ory or
<br />01her tcg~I rc:quircmcr1l in the location where the conStruccion w211 to be
<br />pc1fon11cd, :any provision in this Bond conOicting with said J!::t.~Utory or
<br />legal requirement sh.'lll be dc:c rne:d dclc1cd hcrcfrom ind provuions coo•
<br />forrnioi; 10 s uch sn.tu1 ory or 01hcr lc:gJI requirement sh~II be decm~d
<br />incmpo1:ucd hc:rein. The intent i s that this Oond shall be (OnJtrued :u :.
<br />Sl3lUtory bond :and aol :u a com111on l:.\w bond.
<br />12. Definition,.
<br />12 ,I . 8~.b.ncc or the Conu-:tct r1ke: The 1013j :amount p21yable by 1he
<br />Owner to tJ1c Conrr•ctor under the Corutn.iction Con11.1cl after
<br />all proper adjusunenu have bc:c:n made . includin1 allow-ancc IQ
<br />lhc Contr.a.c:tor o f any amount.I rtccivcd or to be received by
<br />the Owner in settlement of insurance or other ct&.irns for dam•
<br />ages 10 which the Cono:a c 1o r i, entitled. reduced by all Y;llid
<br />:and proper payment! m.idc 10 or on beh:il( of 1he Coo11:1c1or
<br />under the Construction C.>~~:-:::.
<br />12.1. Construction Contract! The agrccinenl ~1wecn 1hc Owner 21n,J
<br />the Contr.1ctor identified on 1hc siinaturc pili.c. including 21H
<br />Contnct Docu1ncn11 and chanau 1hcre10.
<br />12.l . Contr1c1or De(i\uh: failure 0(1hc Contr.1ctor. which hu neither
<br />been rcincdicd t1or waived, to pcrfo1m or olhc.rwi,c 10 compl)
<br />wirh the termt oC 1he Con111uc1ion Cont~cl.
<br />12.li. Owner De hull: Failure of 1hc Owner, which hu neither beer
<br />remedied nor wiivcd 1 to piy the Cont.nc lor u requit ed by tlu
<br />Con1t1uction Con1r:1cr or to pnfom, and coinplctc or comp!)
<br />with 1hc olhcr term, the1cof.
<br />A lllUECOPV
<br />CF.nT lf-lCATION on LAST PAGE
<br />,J.K, 0AnJON, CLEnK
<br />(FOR INFORMATION OII LY-lbmc . i\,ldtt~\ arid lclerhond
<br />AGENT oc BROKER: 1 J\VI I Et>''.; P E l'HF',l· ll I',\ I IVE {A1cl111c ct. h1iinc('r or other p31 ty):
<br />llrmm & llrmm, 1111.
<br />PO 11oi 1229
<br />1'AKl'A YI. JJ601
<br />--i1111nr.-1100--
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