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1 The Contractor and the Surety , jointly and severally, bind themselves , their heirs, executors , administrators successors and assigns to the Owner
<br /> to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference .
<br /> 2 With respect to the Owner, this obligation shall be null and void if the Contractor:
<br /> 2 . 1 Promptly makes payment, directly or indirectly, for all sums due Claimants, and
<br /> 2.2 Defends , indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or entity wrose claim , demand , lien
<br /> or suit is fur the payment for labor, materials or equipment furnished for use in the performance of the Construction Contrail, provided the Owner
<br /> has promptly notified the Contractor and the Surety (at the address described in Paragraph 12) of any claims , demands, liens or suits
<br /> and
<br /> tendered defense of such claims , demands, liens or suits to the Contractor and the Surety, and provided there is no Owner Default.
<br /> 3 With respect to Claimants, this obligation shall be null and void it the Contractor promptly makes payment, directly or indirectly, for all sums due-
<br /> 4 The surety shall have no obiigatlon to Claimants under this bond until.
<br /> 4. 1 Claimants who are employed by or have a direct contract with the Contractor have given notice to the Surety (at the address described in
<br /> Paragraph 21 and sent a copy, or notice thereof, to the Owner, stating that a clam is being made under this Bond and, with substantial accuracy,
<br /> the amount of the claim .
<br /> 42 aorr nts who do not have a direct contract with the Contractor
<br /> . 1 Have furnished written notice to the Contractor and sent a copy, or notice thereof, to the Owner, within 90 days after having last
<br /> performed labor or last furnished materials or equipment included in the claim stating, with substantial accuracy, the amount of the claim and
<br /> the name of the party to whom the materials were furnished or supplied or for whom the labor was done or performed; and
<br /> 2 Have either received a rejection in whole or in part from the Contractor, or not received within 30 days of furnishing the above notice any
<br /> communication from the Contractor by which the Contractor has indicated the claim will be paid directly or indirectly; and
<br /> Not having been paid within the above 30 days, have sent a written notice to the Surety (at the address described in Pargraph 12) and
<br /> seat a copy , or notice thereof, to the Owner, stating the: a claim is being made under this Bond and enclosing a copy of the previous written
<br /> nol ,ce furnished to tree Contracfor.
<br /> 5 If a notice required by paragraph 4 is given by the Owner to the Contractor or to the Surety, that is sufficient comp:iance_
<br /> 6 When the Claimant has satisfied the conditions of Paragraph 4, the Surety shall promptly and at the Surety's expense take the following actions:
<br /> 6.1 Send an answer to the Claimant, with a copy to the Owner, within 45 days after receipt of the claim, stating the amounts that are undisputed
<br /> and the basis for challenging any amounts that are disputed .
<br /> 6.2 Pay or arrange for payment of any undisputed amounts.
<br /> 7 The Surety's total obligation shall not exceed the amount of this Bond , and the amount of this Bond shall be credited for any payments made in
<br /> good faith by the Surety.
<br /> 8 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract
<br /> and to satisfy claire it any, under any Construction Performance Bond . By the Contractor furnishing and the Owner accepting this Bond, they agree
<br /> that all funds earned by the Contractor in the performance of the Construction Contract are dedicated to satisfy obligations of the Contractor and the
<br /> Surety under this Bond, subject to the Owners priority to use the funds for the completion of the work.
<br /> 9 The Surety shah:' not be liable to the Owner, Claimants or others for obligations of the Contractor that are unrelated to the Construction Contact.
<br /> The Owner shall not be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligations to
<br /> make payments to, give notices on behalf of, or otherwise have obligations to Claimants under this Bond.
<br /> 10 The Surety hereby waives notice of any change , including changes of time, to the Construction Contract or to related subcontracts, purchase
<br /> orders and other oblications-
<br /> 11 No suit or action shall be commenced by a Claimant under this Bond other than in a court of competent jurisdiction in the location in which the
<br /> work or part of the work is located or after the expiration of one year from the date (1 ) on which the Claimant cave the notice required by Subparagraph
<br /> 4 . 1 or Clause 4.23, or (2) on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone
<br /> under the Construction Contract, whichever of (1 ) or (2) first occurs . If the provisions of this Paragraph are void or prohibited by law, the
<br />minimum
<br /> period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable.
<br /> 12 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown an the signature page. Actual receipt
<br /> of
<br /> notice by Surety, the Owner or the Contractor, however accomplished, shall be sufficient compliance as of the date received at the address shown on
<br /> the signature page.
<br /> 13 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was
<br /> to be
<br /> performed , any provision in this Bond conflicting with said statutory or legal requirement shay. be deemed deleted herefrom and provisions conforming
<br /> to such: statutory or other legal requirement shall be deemed incorporated herein . The intent is that this Bond shall be construed as a statrtory bond
<br /> and not as a common law bond .
<br /> 14 Upon request by any person or entity appearing to be a potential beneficiary of this Bond , the Contractor shal: promptly furnish a copy Of this Bond
<br /> or shall permit a copy to be made .
<br /> 15 DEFINITIONS
<br /> 15. 1 Claimant: An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish
<br /> labor,
<br /> materials or equipment for use in the performance of the Contract. The intent of the Bond shall be to include without limitation in pre terms "labor,
<br /> materials or equipment" that par, of water, gas power, light, heat. oil , gasoline, teephone service or rental equipment used in the Construction
<br /> Contac!, architectural and engineering services required for performance of the work o` the Contractor and the Contractors subcontractors, and
<br /> all other items for which a mechanics lien may be asserted in the jurisdiction where the labor, materials or equipment were furnished.
<br /> 15.2 Construction Contract The agreement between the Owner and the Contractor identified on the signature page , including an Contract
<br /> Documents and changes thereto.
<br /> 15. 3 Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction
<br /> Contract or to perform: and complete or comply with the other terms thereof.
<br /> MODIFICATIONS TO THIS BOND ARE AS FOLLOWS :
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