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7. When a Claimant has satisfied the conditions of Paragraph
<br /> The Contractor and Surety, jointly and severally, bind 5.1 or 5.2, whichever is applicable, the Surety shall
<br /> themselves, their heirs, executors, administrators, promptly and at the Surety's expense take the following
<br /> successors, and assigns to the Owner to pay for labor, actions:
<br /> materials, and equipment furnished for use in the
<br /> ' performance of the Construction Contract, which is 7.1 Send an answer to the Claimant,with a copy to the
<br /> incorporated herein by reference, subject to the following Owner, within sixty (60) days after receipt of the
<br /> terms. Claim,stating the amounts that are undisputed and
<br /> the basis for challenging any amounts that are
<br /> 2. If the Contractor promptly makes payment of all sums due disputed;and
<br /> to Claimants,and defends,indemnifies,and holds harmless
<br /> the Owner from claims, demands, liens, or suits by any 7.2 Pay or arrange for payment of any undisputed
<br /> person or entity seeking payment for labor, materials, or amounts.
<br /> equipment furnished for use in the performance of the
<br /> Construction Contract, then the Surety and the Contractor 7.3 The Surety's failure to discharge its obligations
<br /> shall have no obligation under this Bond. under Paragraph 7.1 or 7.2 shall not be deemed to
<br /> constitute a waiver of defenses the Surety or
<br /> 3. If there is no Owner Default under the Construction Contractor may have or acquire as to a Claim,
<br /> Contract, the Surety's obligation to the Owner under this except as to undisputed amounts for which the
<br /> Bond shall arise after the Owner has promptly notified the Surety and Claimant have reached agreement. If,
<br /> Contractor and the Surety (at the address described in however, the Surety fails to discharge its
<br /> Paragraph 13)of claims,demands,liens,or suits against the obligations under Paragraph 7.1 or 7.2, the Surety
<br /> Owner or the Owner's property by any person or entity shall indemnify the Claimant for the reasonable
<br /> seeking payment for labor, materials, or equipment attorney's fees the Claimant incurs thereafter to
<br /> furnished for use in the performance of the Construction recover any sums found to be due and owing to the
<br /> Contract, and tendered defense of such claims, demands, Claimant.
<br /> liens,or suits to the Contractor and the Surety.
<br /> 8. The Surety's total obligation shall not exceed the amount of
<br /> ' 4. When the Owner has satisfied the conditions in Paragraph this Bond, plus the amount of reasonable attorney's fees
<br /> 3, the Surety shall promptly and at the Surety's expense provided under Paragraph 7.3,and the amount of this Bond
<br /> defend, indemnify,and hold harmless the Owner against a shall be credited for any payments made in good faith by
<br /> duly tendered claim,demand,lien,or suit. the Surety.
<br /> 5. The Surety's obligations to a Claimant under this Bond 9. Amounts owed by the Owner to the Contractor under the
<br /> shall arise after the following: Construction Contract shall be used for the performance of
<br /> the Construction Contract and to satisfy claims, if any,
<br /> 5.1 Claimants who do not have a direct contract with under any construction performance bond. By the
<br /> the Contractor, Contractor furnishing and the Owner accepting this Bond,
<br /> they agree that all funds earned by the Contractor in the
<br /> 5.1.1 have furnished a written notice of non- performance of the Construction Contract are dedicated to
<br /> ' payment to the Contractor, stating with satisfy obligations of the Contractor and Surety under this
<br /> substantial accuracy the amount claimed Bond,subject to the Owner's priority to use the funds for
<br /> and the name of the party to whom the the completion of the work.
<br /> materials were, or equipment was,
<br /> furnished or supplied or for whom the 10. The Surety shall not be liable to the Owner,Claimants,or
<br /> labor was done or performed,within ninety others for obligations of the Contractor that are unrelated to
<br /> (90)days after having last performed labor the Construction Contract. The Owner shall not be liable
<br /> ' or last furnished materials or equipment for the payment of any costs or expenses of any Claimant
<br /> included in the Claim;and under this Bond, and shall have under this Bond no
<br /> obligation to make payments to or give notice on behalf of
<br /> 5.1.2 have sent a Claim to the Surety (at the Claimants,or otherwise have any obligations to Claimants
<br /> address described in Paragraph 13). under this Bond.
<br /> 5.2 Claimants who are employed by or have a direct 11. The Surety hereby waives notice of any change,including
<br /> contract with the Contractor have sent a Claim to changes of time,to the Construction Contract or to related
<br /> 1 the Surety (at the address described in Paragraph subcontracts,purchase orders,and other obligations.
<br /> 13).
<br /> 12. No suit or action shall be commenced by a Claimant under
<br /> 6. If a notice of non-payment required by Paragraph 5.1.1 is this Bond other than in a court of competent jurisdiction in
<br /> given by the Owner to the Contractor,that is sufficient to the state in which the project that is the subject of the
<br /> satisfy a Claimant's obligation to furnish a written notice of Construction Contract is located or after the expiration of
<br /> non-payment under Paragraph 5.1.1. one year from the date (1) on which the Claimant sent a
<br /> Claim to the Surety pursuant to Paragraph 5.1.2 or 5.2,or
<br /> EJCDC C-615,Payment Bond
<br /> Published December 2010 by the Engineers Joint Contract Documents Committee.
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