D None SeePage 2. AlA Document A312
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1 AlA Document A312 Performance Bond Confonns with the American Institute ofarchitects, AlA Document A312. Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): (Name and Principal Place ofbusiness): OWNER (Name and Address): CONSTRUCTION CONTRACT Date: Amount: $ Description (Name and Location): BOND Date (Not earlier than Construction Contract Date): Amount: $ Modifications to this Bond: (Corporate Seal) D None SeePage 2 (Any additional signatures appear on page 2.) (FOR INFORMATION ONLY - Name, Address and Telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party): 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to thc Owner for the performance of the Construction Contract, which is incorporated herein by reference. 2 Ifthe Contractor performs the Construction Contract, the Surety and the Contractor shall have no obligation under this Bond, except to participate in conferences as provided in Subparagraph Ifthere is no Ovvner Default, the Surety's obligation under this Bond shall arise after: 3.1 The Ovvner has notified the Contractor and the Surcty at its address described in Paragraph 10 below that the Owner is considering declaring a Contractor Default and has requested and attempted to arrange a conference with the Contractor and the Surety to be held not later than fifteen days after receipt ofsuch notice to discuss methods ofperforming the Construction Contract. If the Ovvner, the Contractor and the Surety agree, the Contractor shall be allowed a reasonable timc to perform the Construction Contract, but such an agreement shall not waive thc Owner's right, if any, subsequently to declare a Contractor Default; and 3.2 The Owner has declared a Contractor Default and formally terminated thc Contractor's right to complete the contract. Such Contractor Default shall not be declared earlier than twenty days after the Contractor and the Surety have received notice as provided in Subparagraph 3.1; and 3.3 The Ovvner has agreed to pay the Balance of the Contract Price to the Surety in accordance with the terms of the Construction Contract or to a contractor selected to perform the Construction Contract in accordance with the terms ofthe contract with the Ovvner. 4 When the Ovvner has satisfied the conditions of Paragraph 3, the Surety shall promptly and at the Surety's expense take one of the following actions: 5026 (6-92) S-18521GE 10/99 Page 1 of2 XDP
2 4.1 Arrange for the Contractor, with consent of the Owner, to perfonn and complete the Construction Contract; or 7 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are uurelated to the Construction Contract, and the 4.2 Undertake to perfonn and complete the Construction Contract itself, Balance of the Contract Price shall not be reduced or set off on account of through its agents or through independent contractors; or any such uurelated obligations. No right of action shall accrue on this Bond 4.3 Obtain bids or negotiated proposals from qualified contractors to any person or entity other than the Owner or its heirs, executors, acceptable to the Owner tor a contract for perfonnance and completion of administrators or successors. the Construction Contract, arrange for a contract to be prepared for 8 The Surety herebv waives notice of any change, including changes of execution by the Owner and the contractor selected with the O"ner's time, to the Construction Contract or to related subcontracts, purchase concurrence, to be secured with perfonnance and payment bonds executed orders and other obligations. bv a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragraph 6 in excess of the Balance of the Contract Price incurred by the Owner resulting from the Contractor's default; or 4.4 Waive its right to perfonn and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the circumstances:.1 After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is detennined, tender payment therefor to the Owner; or. 2 Deny liability in whole or in part and notity the Owner citing reasons therefor. 5 If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness, the Surety shall be deemed to be in default on this Bond fifteen days after receipt of an additional "Titten notice from the O"ner to the Surety demanding that the Surety perfonn its obligations under this Bond, and the O"ner shall be entitled to enforce any remedy available to the Owner. lfthe Surety proceeds as provided in Subparagraph 4.4, and the Owner refuses the payment tendered or the Surety has denied liability, in whole or in part, without further notice the Owner shall be entitled to enforce any remedy available to the O"ner. 6 After the Owner has tenninated the Contractor's right to complete the Construction Contract, and if the Surety elects to act under Subparagraph 4.1,4.2, or 4.3 above, then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the O"ner to the Surety shall not be greater than those of the Owner under the Construction Contract. To the limit of the amount of this Bond, but subject to commitment by the Owner ofthe Balance of the Contract Price to mitigation of costs and damages on the Construction Contract, the Surety is obligated without duplication for: 6.1 The responsibilities of the Contractor for correction of defective work and completion ofthe Construction Contract; 6.2 Additional legal, design professional and delay costs resulting from the Contractor's Default, and resulting from the actions or failure to act ofthe Surety under Paragraph 4; and 6.3 Liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by delayed perfonnance or non-perfonnance of the Contractor. 9 Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after Contractor Default or within two years after the Contractor ceased working Of within two years after the Surety refuses or fails to perfonn its obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 10 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the signature page. 11 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be perfonned, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions confonning to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 12 DEFINITIONS 12.1 Balance ofthe Contract Price: The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made, including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalfofthe Contractor under the Construction Contract Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto Contractor Default: Failure of the Contractor, which has neither been remedied nor waived, to perfonn or otherwise to comply with the tenns of the Construction Contract Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perfonn and complete or comply with the other tenns thereof. MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) (Corporate Seal) Page 2 of 2
3 PAYMENT BOND Conforms with The American Institute ofarchitects Bond AlA Document A312 Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): : OWNER (Name and Address): CONSTRUCTION CONTRACT Date: Amount: Description (Name and Location): BOND Date (Not earlier than Construction Contract Date): Amount: Modifications to this Bond: D None!Xl See Page (FOR INFORMATION ONLY-Name, Address and Telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party): 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference. 2 With respect to the Owner, this obligation shall be null and void ifthe Contractor: 2.1 Promptly makes payment, directly or indirectly, for all sums due Claimants, and 2.2 Defends, indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or entity whose claim, demand, lien or suit is for the payment for labor, materials or equipment furnished for use in the performance of the Construction Contract, provided the Owner has promptly notified the Contractor and the Surety (at the address described in Paragraph 12) of any claims, demands, liens or suits and tendered defense of such claims, demands, liens or suits to the Contractor and the Surety, and provided there is no O""ner Default. 3 With respect to Claimants, this obligation shall be null S-2149GE Page 1 of3 XDP
4 and void if the Contractor promptly makes payment, directly or indirectly, for all sums due. 4 The Surety shall have no obligation to Claimants under this Bond until: 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 Paragraph 12) and sent a copy, or notice thereof, to the O\vner, stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the claim. 4.2 Claimants who do not have a direct contract with the Contractor:.1 Have furnished written notice to the Contractor and sent a copy, or notice thereof, to the Owner, within 90 days after having last performed labor or last furnished materials or equipment included in the claim stating, with substantial accuracy, the amount of the claim and the name of the party to whom the materials were furnished or supplied or for whom the labor was done or performed; and. 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 communication from the Contractor by which the Contractor has indicated the claim will be paid directly or indirectly; and.3 Not having been paid within the above 30 days, have sent a written notice to the Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to the Owner, stating that a claim is being made under this Bond and enclosing a copy of the previous written notice furnished to the Contractor. 5 If a notice required by Paragraph 4 is given by the Owner to the Contractor or to the Surety, that is sufficient compliance. 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: 6.1 Send an answer to the Claimant, with a copy to the O\\.ner, within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed. 6.2 Payor arrange for payment of any undisputed amounts. 7 The Surety's total obligation shah not exceed the amount of this Bond, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. 8 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims, if any, under any Construction Performance Bond. By the Contractor furnishing and the O\Vller accepting this Bond, they agree that all funds earned by the Contractor in the performance of the Construction contract are dedicated to satisfy obligations of the Contractor and the Surety under this Bond, subject to the O\Vller's priority to use the funds for the completion ofthe work. 9 The Surety shall not be liable to the Owner, Claimants or others for obligations ofthe contractor that are unrelated to the Construction Contract. 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 make payments to, give notices on behalf of, or otherwise have obligations to Claimants under this Bond. 10 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. 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 work or part of the work is located or after the expiration of one year from the date (1) on which the Claimant gave the notice required by Subparagraph 4.1 or Clause 4.2.3, or (2) on which the last labor or service was performed by anyone or the last materials or equipment were. furnished by anyone under the Construction contract, whichever of (1) or (2) first occurs. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction ofthe suit shall be applicable. 12 Notice to the Surety, the O\vner or the Contractor shall be mailed or delivered to the address shown on the signature page. Actual receipt of notice by Surety, the Owner or the Contractor, however accomplished, shall be sufficient compliance as ofthe date received at the address shown on the signature page. 13 When this bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 14 Upon request by any person or entity appearing to be a potential beneficiary of this Bond, the Contractor shall promptly furnish a copy ofthis Bond or shall permit a copy to be made. 15 DEFINITIONS 15.1 Claimant: An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish labor, materials or equipment for use in the performance of the Contract. The intent of this Bond shall be to include without limitation in the terms "labor, materials or equipment" that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental equipment used in the Construction Contract, architectural and engineering services required for performance of the work ofthe Contractor and the Contractor's subcontractors, and ail other items for which a mechanic's lien may be asserted in the jurisdiction where the labor, materials or equipment were furnished Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto Owner Default: Failure ofthe Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. S-2149GE Page 2 of3
5 MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: Sub paragraph 4.3 is added as follows: 4.3 Claimant has furnished to Surety proof of claim duly sworn to by Claimant, along with adequate supporting documentation which provcs the amount claimed is due and payable. Paragraph 5 is amcnded as follows: 5 Ifa notice required by paragraph 4 is given by Owner to thc Contractor and to the Surety, that is sufficient compliance. Paragraph 6 is deleted in its entirety and the following is substituted in its place: 6 When the Claimant has satisfied the conditions ofparagraph 4, and has submitted all supporting documentation and any proof of claim requested by the Surety, the Surety shall, within a reasonable period oftime, notify the Claimant ofthe amounts that are undisputed and the basis for challenging any amounts that are disputed, including, but not limited to, the lack of substantiating documentation to support the claim as to entitlement or amount, and the Surety shall, within a reasonable period oftime, payor make arrangements for payment of any undisputed amount; provided, however, that the failure ofthe Surety to timely discharge its obligations under this paragraph or to dispute or identify any specific defense to all or any part ofa claim shall not be deemed to be an admission ofliability by the Surety as to such claim or otherwise constitute a waiver ofthe Contractor's or Surety defenses to, or right to dispute such claim. Rather, the Claimant shall have the immediate right, without further notice, to bring suit against the Surety to enforce any remedy available to it under this Bond. (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) (Corporate Seal) ~ GE Page 3 of 3
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