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DocuSign Envelope ID:98CAB32E-1814-4C97-B61 E-1314BE791381 EA
<br /> Orange Count)',North Carolina
<br /> Lake Orange Erosion Control Barrier Replacement
<br /> 1. The Contractor and Surety, jointly and severally, bind 5.1 Arrange for the Contractor, with the
<br /> themselves, their heirs. executors, administrators, consent of the Owner, to perform and complete the
<br /> successors,and assigns to the Owner for the performance Construction Contract;
<br /> of the Construction Contract,which is incorporated herein
<br /> by reference 5.2 Undertake to perform and complete the
<br /> Construction Contract itself, through its agents or
<br /> 2. if the Contractor performs the Construction Contract, ndependent contractors;
<br /> the Surety and the Contractor sha I have no obligation
<br /> under this Bond,except when applicable to partic pate in a 5.3 Obtain bids or negotiated proposals from
<br /> conference as provided in Paragraph 3. qualified contractors acceptable to the Owner for a
<br /> contract for performance and completion of the
<br /> 3. If there is no Owner Default under the Construction Construction Contract, arrange for a contract to be
<br /> Contract, the Surety's obligation under this Bond shal prepared for execution by the Owner and a
<br /> arise after- contractor selected with the Owners concurrence,to
<br /> be secured with performance and payment bonds
<br /> 3.1 The Owner first provides notice to the executed by a qualified surety equivalent to the
<br /> Contractor and the Surety that the Owner is bonds issued on the Construction Contract, and pay
<br /> considering declaring a Contractor Default. Such to the Owner the amount of damages as described in
<br /> notice shall indicate whether the Owner is requesting Paragraph 7 in excess of the Balance of the Contract
<br /> a conference among the Owner, Contractor, and Price incurred by the Owner as a result of the
<br /> Surety to discuss the Contractor's performance. If the Contractor Default;or
<br /> Owner does not request a conference, the Surety
<br /> may,within five(5)business days after receipt of the 5.4 Waive its right to perform and complete,
<br /> Owner's notice, request such a conference. If the arrange for completion, or obtain a new contractor,
<br /> Surety timely requests a conference,the Owner shall and with reasonable promptness under the
<br /> attend. Unless the Owner agrees otherwise, any circumstances:
<br /> conference requested under this Paragraph 3 1 shall
<br /> be held within ten (10) business days of the Surety's 5.4.1 After investigation, determine the
<br /> receipt of the Owner's notice. If the Owner, the amount for which it may be liable to the Owner
<br /> Contractor,and the Surety agree,the Contractor shall and, as soon as practicable after the amount is
<br /> be allowed a reasonable time to perform the determined,make payment to the Owner;or
<br /> Construction Contract, but such an agreement shall
<br /> not waive the Owner's right. if any, subsequently to 5.4.2 Deny liability in whole or in part and
<br /> declare a Contractor Default; notify the Owner,citing the reasons for denial.
<br /> 3 2 The Owner declares a Contractor Default, 6 If the Surety does not proceed as provided in
<br /> terminates the Construction Contract and notifies the Paragraph 5 with reasonable promptness,the Surety shall
<br /> Surety;and be deemed to be in default on this Bond seven days after
<br /> receipt of an additional written notice from the Owner to
<br /> 3.3 The Owner has agreed to pay the Balance of the Surety demanding that the Surety perform its
<br /> the Contract Price in accordance with the terms of obligations under this Bond, and the Owner shall be
<br /> the Construction Contract to the Surety or to a entitled to enforce any remedy available to the Owner. If
<br /> contractor selected to perform the Construction the Surety proceeds as provided in Paragraph 5.4,and the
<br /> Contract Owner refuses the payment or the Surety has denied
<br /> liability, in whole or in part, without further notice the
<br /> 4 Failure on the part of the Owner to comply with the Owner shall be entitled to enforce any remedy available to
<br /> notice requirement in Paragraph 3 1 sha I not constitute a the Owner.
<br /> failure to comply with a cond tion precedent to the
<br /> Surety's obligations, or release the Surety from its 7. If the Surety elects to act under Paragraph 5.1,5.2,or
<br /> obligations,except to the extent the Surety demonstrates 5.3, then the responsibilities of the Surety to the Owner
<br /> actual prejudice. shall not be greater than those of the Contractor under the
<br /> Construction Contract, and the responsibilities of the
<br /> 5. When the Owner has satisfied the conditions of Owner to the Surety shall not be greater than those of the
<br /> Paragraph 3,the Surety shall promptly and at the Surety's Owner under the Construction Contract. Subject to the
<br /> expense take one of the following actions: commitment by the Owner to pay the Balance of the
<br /> Contract Price,the Surety is obligated,without duplication
<br /> for:
<br /> E1CDC°C-610,Performance Bond
<br /> Copyright(D 2013 National Society of Professional Engineers,American Council of Engineering Companies,
<br /> and American Society of Civil Engineers. All rights reserved. 2 of 3
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