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I. The Conlractor and (he Surety.joinlly a~d severally, bind tbemsclves.
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<br />to pay for labor, matcrlals and equipment furnished for use in the perfor-
<br />mance of the Conslructlon Contract, which is incorporated herein by
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<br />2. With respect to the Owner. this obligation shaB be null and void if
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<br /> 2.1. Promplly ma~ es payment, directly or indirectly, for all sums du~
<br /> Claimants, and
<br /> 2.2. Defends. indemnifies and bolds harmless the Owner from all da~ms.
<br /> demands, liens or suits by any person or entity who furnished
<br /> labor, materials or equipment for use in the performance of the
<br /> Construction Commct, provided the Owner has promptly notified
<br /> the Contraclor ahd thc Surety (at the address described in Para-
<br /> graph 12l of any claims, demands, liens or suits and tendered
<br /> defense of such claims, demands, liens or suits to the Contractor
<br /> and the Surely. and provided there is no Owner Default.
<br /> 3. Wilh respect to Claimants. this obligation shall be null and void if lbo
<br /> Contractor promptly makes payment, d~rectly or indirectly, for all sums
<br /> due.
<br />4. The Surety shall have no obligation to Claimants under this Bond until:
<br /> 4.1. Claimants who arc employed by or have a direct contract with
<br /> the Contraclor have given notice to the Surety (at the address
<br /> described in paragraph 12) and sent a copy. or notice thereof, to
<br /> the Owner. sladng that a claim is being made under this Bond
<br /> and. with substantial accuracy, the amount of the claim.
<br /> 4.2. Claimants who do not have a direct contract with the Contractor:
<br /> I. Have fumisbed written notice to the Contractor and sent a
<br /> copy, or notice thereof, to the Owner, within 90 days after
<br /> havinglast performed labor or last furnished materials or equip-
<br /> ment included in the claim stating, with substanilal accuracy.
<br /> the amount of the claim and the name of the party lo whom
<br /> the materials'were furnished or suppl~cd or for whom the labor
<br /> was done or performed; and
<br /> 2. Have ~i{her rccelved a ~:ejecdon in whole or in part from thc
<br /> ContraCtor. or not received v~ithJn 30 days of furnishing the
<br /> above notice any communication from the Contractor by which
<br /> the ~'ontractor has indicated the claim will be paid directly or
<br /> indirectly; and
<br /> 3. 14o having been paid within the above 30 days, have sent a
<br /> written notice to the Surety (at t~e address described in Para-
<br /> graph 12) and sent a copy, or notice thereof, to the Owner,
<br /> stating that a claim is being made under this Bond and enclosing
<br /> a copy of the previous written notice furnished to the Con*
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<br /> 5. if a notice required by Paragraph 4 is given by the Owner to the
<br /> Contractor or to the Surety. that is su~cient compliance.
<br />,r~ When the Cia{mane has satisfied the conditions of Paragraph 4, the
<br /> Surety shall promptly and at the Surety's expense take the following
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<br /> 6.1. Send an answer to the Claimant. with a copy to the Owner, within
<br /> 45 days alter receipt of the claim, stating the amounts thai are
<br /> undisputed and the basis for challenging any amounts that are
<br /> disputed.
<br /> 6.2. Pay or arrange for payment of any undisputed amounts.
<br /> 7. The Surety's tolal obIlgaHon shaU not exceed the amount of this Bond.
<br /> 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
<br /> Contract shall be used for the performance of the Construction Contract
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<br />and to satisfy claims, if any. under any Construction performance Bond.
<br />By Ihe Contractor furnishing and the Owner accepting this Bond, they
<br />agree that all funds earned by the Contractor in'~he pe~ormanc= o~' the
<br />Construction Contract are dedicated to satisfy obligations of the Con-
<br />tractor and the Surety under this Bond, subject to the Owner's priority
<br />to use Ihe funds for the completion of the work.
<br />9. The Surety shaft not be liable Io the Owner. Claimants or others for
<br />obligations of the Contractor that are unrelated to the Construction Con-
<br />tract. The Owner shall not be liable for payment of any costs or expenses
<br />of any Claimant under this Bond, and shall have under Ibis Bond no
<br />obfigations to make payments to. give notices on behalf of. or otberwi~e
<br />have obligations to Claimants under this Bond.
<br />10. The Surety hereby waives notice of any change, including changes of
<br />time, to the Construction Contracl or to related subcontracts, purchase
<br />orders and otber obllgations.
<br />I i. No suit or action shall be commenced by a Claimant under this Bond
<br />other than Jn a court of cbmpotent jurisdiction in the location in which the
<br />work or part of the wor~ is located or after the expiration of one year
<br />from the date (Il on wfiich the Claimant gave the notice required by
<br />Subparagraph 4.1 or Clause 4.2 (iii). or (2) on which Ihe last labor or
<br />servicq was performed by anyone or lbo last materials or equipment were
<br />furnished by anyone under the Construction Contract. whichever of (I)
<br />or (2) first occurs, if the provisions of this paragraph are void or prohibited
<br />by law. the minimum period of limitatlo~ available to sureties as a defense
<br />in thejurisd[cti6n orth~ suit shal! be appBcab[e, i'
<br />12. fqot[ce to I~e Surety, the Owner or the Contractor shall be mailed or
<br />delivered to the address shown on the signature page. Actual receipt et'
<br />nodce by Surety. the Owner or the Contractor, however accomplished.
<br />shall be sul~clent compllance as of the date received at the address shown
<br />on the signature page.
<br /> 13. When th s Bond has been furnished Io comply with a statutory or
<br /> other legal requirnment'{n the location where the construction was to be
<br /> performed, any provLsioh in this Bond conflicting with sa~d statutory or
<br /> legal requirement sha~.l 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 Bond shall be construed as a
<br /> statutory bond and not as a common law bond.
<br /> 14. Upon request by any person or entity appearing to be a
<br /> beneficiary of this Bond, the Contract6r shall promptly furnish a copy. b..
<br /> this Bond or shall permit a copy to be.made.
<br /> 15. DEFINITIONS
<br /> 15.1. Clalmant: An individual or entity having a direct contract with
<br /> the Contractor or with a subcontractor of the Contractor to
<br /> furnish labor, materials or equ{pment for use in the performance
<br /> of the Contract. The intent of this Bond shall be to include without
<br /> limitation in the terms "labor. materials or equipment" that part
<br /> of water, gas, power, light, heat, oil. gasoline, telephone service
<br /> or rental equipment used in the Construction Contract, archltec-
<br /> rural and engineering services required for performance of the
<br /> work of the Contractor and the Contractor's subcontractors, and
<br /> all other items for which a mechanic's lien may be asserted in
<br /> the jurisdiction where thc labor, materials or equipment were
<br /> furnished.
<br /> 15.2. Construct[on Contract: The agreement between the Owner and
<br /> the Contractor identified on the signature page. including all
<br /> Contract Documents and changes thereto. ,
<br /> 15.3. 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 or comply
<br /> with the other terms thereof.
<br />
<br />(FOR INFORMATION ONLY~Name, Address and Telephone)
<br />ANENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party):
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