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I The Contractor and Surety,jointly and severally, bind 5.4 Waive its right to perform and complete, arrange
<br /> themselves, their heirs, executors, administrators, for completion, or obtain a new contractor and with
<br /> successors and assigns to the Owner for the performance reasonable promptness under the circumstances:
<br /> of the Construction Contract,which is incorporated herein .1 After investigation, determine the amount for
<br /> by reference. which it may be liable to the Owner and, as
<br /> 2 If the Contractor performs the Construction Contract, soon as practicable after the amount is
<br /> the Surety and the Contractor shall have no obligation determined,make payment to the Owner;or
<br /> under this Bond,except when applicable to participate in a .2 Deny liability in whole or in part and notify the
<br /> conference as provided in Section 3. Owner,citing the reasons for denial.
<br /> 3 If there is no Owner Default under the Construction 6 If the Surety does not proceed as provided in-Section.5-
<br /> Contract, the Surety's obligation under this Bond shall with reasonable promptness,the Surety shall be deemed to
<br /> arise after be in default on this Bond seven days after receipt of an
<br /> additional written notice from the Owner to the Surety
<br /> 3.1 the Owner first provides notice to the Contractor demanding that the Surety perform its obligations under
<br /> and the Surety that the Owner is considering declaring this Bond, and the Owner shall be entitled to enforce any
<br /> a Contractor Default.Such notice shall indicate whether remedy available to the Owner. If the Surety proceeds as
<br /> the Owner is requesting a conference among the provided in Section 5.4, and the Owner refuses the
<br /> Owner, Contractor and Surety to discuss the payment or the Surety has denied liability, in whole or in
<br /> Contractor's performance. If the Owner does not part, without further notice the Owner shall be entitled to
<br /> request a conference, the Surety may,within five (5) enforce any remedy available to the Owner.
<br /> business days after receipt of the Owner's notice, 7 If the Surety elects to act under Section 5.1,5.2 or 5.3,
<br /> request such a conference. If the Surety timely then the responsibilities of the Surety to the Owner shall
<br /> requests a conference,the Owner shall attend. Unless not be greater than those of the Contractor under the
<br /> the Owner agrees otherwise,any conference requested Construction Contract, and the responsibilities of the
<br /> under this Section 3.1 shall be held within ten (10) Owner to the Surety shall not be greater than those of the
<br /> business days of the Surety's receipt of the Owner's Owner under the Construction Contract. Subject to the
<br /> notice. If the Owner, the Contractor and the Surety commitment by the Owner to pay the Balance of the
<br /> agree, the Contractor shall be allowed a reasonable Contract Price,the Surety is obligated,without duplication,
<br /> time to perform the Construction Contract,but such an for
<br /> agreement shall not waive the Owner's right, if any, 7.1 the responsibilities of the Contractor for correction .
<br /> subsequently to declare a Contractor Default; of defective work and completion of the Construction
<br /> 3.2 the Owner declares a Contractor Default, Contract;
<br /> terminates the Construction Contract and notifies the 7.2 additional legal, design professional and delay
<br /> Surety and costs resulting from the Contractor's Default, and
<br /> 3.3 the Owner has agreed to pay the Balance of the resulting from the actions or failure to act of the Surety
<br /> Contract Price in accordance with the terms of the under Section 5;and
<br /> Construction Contract to the Surety or to a contractor 7.3 liquidated damages, or if no liquidated damages
<br /> selected to perform the Construction Contract. are specified in the Construction Contract, actual
<br /> 4 Failure on the part of the Owner to comply with the damages caused by delayed performance or
<br /> notice requirement in Section 3.1 shall not constitute a non-performance of the Contractor.
<br /> failure to comply with a condition precedent to the Surety's 8 If the Surety elects to act under Section 5.1,5.3 or 5.4,
<br /> obligations, or release the Surety from its obligations, the Surety's liability is limited to the amount of this Bond.
<br /> except to the extent the Surety demonstrates actual
<br /> prejudice. 9 The Surety shall not be liable to the Owner or others for
<br /> obligations of the Contractor that are unrelated to the
<br /> 5 When the Owner has satisfied the conditions of Section Construction Contract, and the Balance of the Contract
<br /> 3, the Surety shall promptly and at the Surety's expense Price shall not be reduced or set off on account of any
<br /> take one of the following actions: such unrelated obligations. No right of action shall accrue
<br /> 5.1 Arrange for the Contractor,with the consent of the on this Bond to any person or entity other than the Owner
<br /> Owner, to perform and complete the Construction or its heirs, executors, administrators, successors and
<br /> Contract; assigns.
<br /> 5.2 Undertake to perform and complete the 10 The Surety hereby waives notice of any change,
<br /> Construction Contract itself, through its agents or including changes of time, to the Construction Contract or
<br /> independent contractors; to related subcontracts, purchase orders and other
<br /> 5.3 Obtain bids or negotiated proposals from qualified obligations.
<br /> contractors acceptable to the Owner for a contract for 11 Any proceeding, legal or equitable, under this Bond
<br /> performance and completion of the Construction may be instituted in any court of competent jurisdiction in
<br /> Contract, arrange for a contract to be prepared for the location in which the work or part of the work is located
<br /> execution by the Owner and a contractor selected with and shall be instituted within two years after a declaration
<br /> the Owner's concurrence, to be secured with of Contractor Default or within two years after the
<br /> performance and payment bonds executed by a Contractor ceased working or within two years after the
<br /> qualified surety equivalent to the bonds issued on the Surety refuses or fails to perform its obligations under this
<br /> Construction Contract, and pay to the Owner the Bond, whichever occurs first. If the provisions of this
<br /> amount of damages as described in Section 7 in Paragraph are void or prohibited by law, the minimum
<br /> excess of the Balance of the Contract Price incurred by period of limitation available to sureties as a defense in the
<br /> the Owner as a result of the Contractor Default;or jurisdiction of the suit shall be applicable.
<br /> The Company executing this bond vouches that this document conforms to American institute of Architects Document A312-2010 Edition
<br /> LAIC Perf A312(10110) 2
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