|
DocuSign Envelope ID:29F350EB-C553-4EEB-BD97-898B3775EE03
<br /> §7 If the Surety elects to act under,Section 5,1,5,2 or 5,3,then the responsibilities of the Surety to the Owner shall not be greater than those of the
<br /> Contractor under the Construction Contract,and the responsibilities of the Owner to the Surety shall not be greater than those ofthe Oivner under the
<br /> Construction Contract.Subject to the commitment by the Omer to pay the Balance of the Contract Price,the Surety Is obligated,without
<br /> duplication,for
<br /> .1 the responsibilities of the Contractor for correctfon of defective work and completion of the,Construction Contract;
<br /> .2 additional legal,design professional and delay costs resulting from the Contractot's Default,and resulting from the actions or
<br /> failure to act of the Surety under Section 5,and
<br /> .3 -liquidated damages,or if no liquidated damages are specified In the Construction Contract,actual damages caused by delayed
<br /> performance or non-performance of the Contractor.
<br /> §8 I the Surety elects to act under Section 5.1,5.3 or 5.+1,the Surety's liability Is limited to the amount of this Bond.
<br /> §9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract,and the
<br /> Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations,No right of action shall accrue on this
<br /> Bond to any person or entity other than the Owner or its heirs,oxccutors,administrators,successors and assigns.
<br /> §10 The Surety hereby waives notice of any change,including changes of time,to the Construction Contract or to related subcontracts,purchaso
<br /> orders and other obligations.
<br /> §11 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
<br /> part of the work is located and shall be instituted within two years alter a declaration of Contractor Default or within two years after the Contractor
<br /> ceased working or within hvo years after the Surety refuses or fails to perform its obligations under this Bond,whichever occurs first.If the
<br /> provisions of this Paragraph are void or prohibited by law,the minimum period of limitation available to sureties as a dofenso in the jurisdiction of
<br /> the suit shalt be applicable,
<br /> §12 Notice to the Surety,the Owner or the Contractor shnil be mailed or delivered to the address shorn on the page on which their signature
<br /> appears.
<br /> §13 When this Bond has been fitmished to comply with a statutory or other legal requirement in the location where the construction was to be
<br /> perforated,any provision fn this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions
<br /> conforming to;such statutory or other legal requirement shall be deemed incorporated herein,When so furnished,the intent is that this Bond shall be
<br /> construed as a statutory bond and not as a common luw bond.
<br /> §14 Definitions
<br /> §14.1 Balance of the Contract Price.The total amount payable by the Owner to the Contractor under the Construction Contract after all proper
<br /> adjustments have been made,including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of
<br /> insurance or other claims for damages to which the Contractor Is entitled,reduced by all valid and proper payments made to or on behalf of the
<br /> Contractor under the Construction Contract.
<br /> §'14.2 Construction Contract.'Ilse agreement between the Owner and Contractor Identified on the cover page,including all Contract Documents
<br /> and changes made to the agreement and the Contract Documents,
<br /> §14.3 Contractor Default.Failure of the Contractor,which has not been remedied or waived,to perform or othenvise to comply with a material
<br /> term of the Construction Contract.
<br /> §14.4 Owner Default,Failure of the Owner,which has not been remedied or valved,to pay the Contractor as required under the Construction
<br /> Contract or to perform and complete or comply with the other material terms of the Construction Contract,
<br /> §14,5 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor.
<br /> §15 If this Bond is Issued for an agreement between a Contractor and subcontractor,the term Contractor In this Bond shall be dcomcd to be
<br /> Subcontractor and the term Owner shall be deemed to be Contractor.
<br /> S-18521AS 8110
<br />
|