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EJCDC® C-615, Payment Bond.
<br />Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies,
<br />and American Society of Civil Engineers. All rights reserved.
<br />Page 2 of 4
<br />1. The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors,
<br />administrators, successors, and assigns to the Owner to pay for labor, materials, and equipment
<br />furnished for use in the performance of the Construction Contract, which is incorporated herein by
<br />reference, subject to the following terms.
<br />2. If the Contractor promptly makes payment of all sums due to Claimants, and defends, indemnifies,
<br />and holds harmless the Owner from claims, demands, liens, or suits by any person or entity seeking
<br />payment for labor, materials, or equipment furnished for use in the performance of the Construction
<br />Contract, then the Surety and the Contractor shall have no obligation under this Bond.
<br />3. If there is no Owner Default under the Construction Contract, the Surety’s obligation to the Owner
<br />under this Bond will arise after the Owner has promptly notified the Contractor and the Surety (at the
<br />address described in Paragraph 13) of claims, demands, liens, or suits against the Owner or the
<br />Owner’s property by any person or entity seeking payment for labor, materials, or equipment
<br />furnished for use in the performance of the Construction Contract, and tendered defense of such
<br />claims, demands, liens, or suits to the Contractor and the Surety.
<br />4. When the Owner has satisfied the conditions in Paragraph 3, the Surety shall promptly and at the
<br />Surety’s expense defend, indemnify, and hold harmless the Owner against a duly tendered claim,
<br />demand, lien, or suit.
<br />5. The Surety’s obligations to a Claimant under this Bond will arise after the following:
<br />5.1. Claimants who do not have a direct contract with the Contractor
<br />5.1.1. have furnished a written notice of non-payment to the Contractor, stating with
<br />substantial accuracy the amount claimed and the name of the party to whom the
<br />materials were, or equipment was, furnished or supplied or for whom the labor was
<br />done or performed, within ninety (90) days after having last performed labor or last
<br />furnished materials or equipment included in the Claim; and
<br />5.1.2. have sent a Claim to the Surety (at the address described in Paragraph 13).
<br />5.2. Claimants who are employed by or have a direct contract with the Contractor have sent a Claim
<br />to the Surety (at the address described in Paragraph 13).
<br />6. If a notice of non-payment required by Paragraph 5.1.1 is given by the Owner to the Contractor, that
<br />is sufficient to satisfy a Claimant’s obligation to furnish a written notice of non-payment under
<br />Paragraph 5.1.1.
<br />7. When a Claimant has satisfied the conditions of Paragraph 5.1 or 5.2, whichever is applicable, the
<br />Surety shall promptly and at the Surety’s expense take the following actions:
<br />7.1. Send an answer to the Claimant, with a copy to the Owner, within sixty (60) days after receipt
<br />of the Claim, stating the amounts that are undisputed and the basis for challenging any amounts
<br />that are disputed; and
<br />7.2. Pay or arrange for payment of any undisputed amounts.
<br />7.3. The Surety’s failure to discharge its obligations under Paragraph 7.1 or 7.2 will not be deemed
<br />to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a Claim,
<br />except as to undisputed amounts for which the Surety and Claimant have reached agreement.
<br />If, however, the Surety fails to discharge its obligations under Paragraph 7.1 or 7.2, the Surety
<br />shall indemnify the Claimant for the reasonable attorney’s fees the Claimant incurs thereafter
<br />to recover any sums found to be due and owing to the Claimant.
<br />DocuSign Envelope ID: 0844D1D6-E311-4FC5-8B5B-BB1E27A908ED
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