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I The Contractor and the Surety, jointly and severally, 6 When the Claimant has satisfied the conditions of
<br /> bind themselves, their heirs, executors, administrators, Paragraph 4, the Surety shall promptly and at the
<br /> successors and assigns to the Owner to pay for labor, Surety's expense take the following actions:
<br /> materials and equipment furnished for use in the perfor-
<br /> mance of the Construction Contract, which is incorpo- 6.1 Send an answer to the Claimant, with a copy to
<br /> rated herein by reference. the Owner, within 45 days after receipt of the claim,
<br /> stating the amounts that are undisputed and the basis
<br /> 2 With respect to the Owner, this obligation shall be for challenging any amounts that are disputed.
<br /> null and void if the Contractor: 6.2 Pay or arrange for payment of any undisputed
<br /> 2.1 Promptly makes payment, directly or indirectly, amounts.
<br /> for all sums due Claimants, and
<br /> 7 The Surety's total obligation shall not exceed the
<br /> 2.2 Defends, indemnifies and holds harmless the amount of this Bond, and the amount of this Bond shall be
<br /> Owner from claims, demands, liens or suits by any credited for any payments made in good faith by the Surety.
<br /> person or entity whose claim, demand, lien or suit is
<br /> for the payment for labor, materials or equipment fur- 8 Amounts owed by the Owner to the Contractor under
<br /> nished for use in the performance of the Construction the Construction Contract shall be used for the perfor-
<br /> Contract, provided the Owner has promptly notified mance of the Construction Contract and to satisfy claims,
<br /> the Contractor and the Surety (at the address if any, under any Construction Performance Bond. By
<br /> described in Paragraph 12) of any claims, demands, the Contractor furnishing and the Owner accepting this
<br /> liens or suits and tendered defense of such claims, Bond, they agree that all funds earned by the Contractor
<br /> demands, liens or suits to the Contractor and the in the performance of the Construction Contract are
<br /> Surety, and provided there is no Owner Default. dedicated to satisfy obligations of the Contractor and
<br /> the Surety under this Bond, subject to the Owner's prior-
<br /> 3 With respect to Claimants, this obligation shall be ity to use the funds for the completion of the work.
<br /> null and void if the Contractor promptly makes pay-
<br /> ment, directly or indirectly, for all sums due. 9 The Surety shall not be liable to the Owner, Claimants
<br /> 4 The Surety shall have no obligation to Claimants or others for obligations of the Contractor that are unrelat-
<br /> under this Bond until: ed to the Construction Contract. The Owner shall not be
<br /> liable for payment of any costs or expenses of any Claim-
<br /> 4.1 Claimants who are employed by or have a direct ant under this Bond,and shall have under this Bond no obli-
<br /> contract with the Contractor have given notice to the gations to make payments to, give notices on behalf of, or
<br /> Surety (at the address described in Paragraph 12) and otherwise have obligations to Claimants under this Bond.
<br /> sent a copy, or notice thereof, to the Owner, stating
<br /> that a claim is being made under this Bond and, with 10 The Surety hereby waives notice of any change,
<br /> substantial accuracy, the amount of the claim. including changes of time, to the Construction Contract
<br /> 4.2 Claimants who do not have a direct contract or to related subcontracts, purchase orders and other
<br /> with the Contractor: obligations.
<br /> .1 Have furnished written notice to the Con- 11 No suit or action shall be commenced by a Claimant
<br /> tractor and sent a copy, or notice thereof, to under this Bond other than in a court of competent juris-
<br /> the Owner, within 90 days after having last diction in the location in which the work or part of the
<br /> performed labor or last furnished materials or work is located or after the expiration of one year from the
<br /> equipment included in the claim stating, with date(1)on which the Claimant gave the notice required by
<br /> substantial accuracy,the amount of the claim Subparagraph 4.1 or Clause 4.2.3, or (2) on which the last
<br /> and the name of the party to whom the labor or service was performed by anyone or the last mate-
<br /> materials were furnished or supplied or for rials or equipment were furnished by anyone under the Con-
<br /> whom the labor was done or performed; and struction Contract,whichever of(1)or(2)first occurs. If the
<br /> provisions of this Paragraph are void or prohibited by law,
<br /> .2 Have either received a rejection in whole or the minimum period of limitation available to sureties as a
<br /> in part from the Contractor, or not received defense in the jurisdiction of the suit shall be applicable.
<br /> within 30 days of furnishing the above no-
<br /> tice any communication from the Contractor
<br /> by which the Contractor has indicated the 12 Notice to the Surety, the Owner or the Contractor
<br /> claim will be paid directly or indirectly; and shall be mailed or delivered to the address shown on the
<br /> signature page. Actual receipt of notice by Surety, the
<br /> .3 Not having been paid within the above 30 Owner or the Contractor, however accomplished, shall
<br /> days, have sent a written notice to the Surety be sufficient compliance as of the date received at the
<br /> (at the address described in Paragraph 12)and address shown on the signature page.
<br /> sent a copy, or notice thereof, to the Owner,
<br /> stating that a claim is being made under this 13 When this Bond has been furnished to comply with a
<br /> Bond and enclosing a copy of the previous statutory or other legal requirement in the location where
<br /> written notice furnished to the Contractor. the construction was to be performed,any provision in this
<br /> Bond conflicting with said statutory or legal requirement
<br /> 5 If a notice required by Paragraph 4 is given by the shall be deemed deleted herefrom and provisions con-
<br /> Owner to the Contractor or to the Surety, that is suffi- forming to such statutory or other legal requirement shall
<br /> cient compliance. be deemed incorporated herein. The intent is that this
<br /> AIA DOCUMENT A312•PERFORMANCE BOND AND PAYMENT BOND•DECEMBER 1984 ED •AIA°
<br /> THE AMERICAN INSTITUTE OF ARCHITECTS,1735 NEW YORK AVE.,NW,WASHINGTON,D.C.20006 A312-1984 5
<br /> THIRD PRINTING •MARCH 1987
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