Orange County NC Website
Browse       Search
Page 47 of 53 <br />5-2-25 <br />48.4 The CMAR acknowledges liens may not be filed against governmental property and that such liens <br />are not authorized by law. In the event any agent, materials or services provider, contractor, or <br />Subcontractor of CMAR files or attempts to file any notice of lien, claim of lien, or lien against <br />Owner’s property provided the Owner has fulfilled its payment obligation under the Contract <br />Documents. CMAR shall take immediate affirmative steps to remove and/or terminate any such <br />claim of lien, lien, or lien action. Immediate affirmative steps means the CMAR, at CMAR’s sole <br />expense, shall without delay take whatever action is necessary, including without limitation <br />litigation, to remove and/or terminate such claim of lien, lien, or lien action from Owner’s property. <br />If Owner determines CMAR is not proceeding as required by this section to remove and/or <br />terminate any claim of lien, lien, or lien action Owner may take any action necessary to remove <br />and/or terminate such claim of lien, lien, or lien action and all costs or expense related to such <br />action by Owner shall be borne by CMAR. <br />48.5 The obligations of the CMAR under this Article 48 shall not extend to the liability of the Project <br />Designer, the Project Designer’s consultants, and agents and employees of any of them arising out <br />of (1) the preparation or approval of maps, drawings, opinions, reports, surveys, change orders, <br />designs or specifications, or (2) the giving of or the failure to give directions or instructions by the <br />Project Designer, the Project Designer’s consultants, and agents and employees of any of them <br />provided such giving or failure to give is the primary cause of the injury or damage. <br />49.PERFORMANCE BOND AND PAYMENT BOND <br />49.1. Within fifteen (15) days of the establishment of each GMP, the CMAR shall provide a performance <br />bond and payment bond, each in the amount of the GMP plus the Owner’s allowance. The amount <br />of the performance and payment bonds may be adjusted if the guaranteed maximum price is <br />reduced after the bids are received. Each time a new GMP is established and approved by the <br />Owner, the CMAR shall increase the amount of the performance and payment bonds to the amount <br />of the cumulative GMP, including Owner’s allowances, so that at all times a single performance <br />bond and a single payment bond shall be in effect for the entire Project under contract at that time. <br />49.2. The performance bond and payment bond shall be executed by a surety company authorized to do <br />business in North Carolina. Bonds shall be executed in the form bound with the RFQ unless the <br />Owner accepts another form of bond. <br />49.3. All bonds shall be countersigned by an authorized agent and attorney-in-fact for the bonding <br />company who is licensed to do business in North Carolina. The title “Licensed Resident Agent” <br />shall appear after the signature. There shall be attached to each copy of the bond a certified copy of <br />power of attorney properly executed and dated. The seal of the bonding company shall be <br />impressed on each signature page of the bonds. <br />50.ASSIGNMENTS <br />50.1. The CMAR shall not delegate or subcontract its duties under this Contract or any portion of this <br />Contract except as expressly set forth herein for general conditions and construction subcontracts. <br />The CMAR may not make a general assignment of its rights under this Contract to any third party <br />without the express consent of the Owner. Except as may be required under terms of the <br />performance bond or payment bond, no funds or sums of money due or to become due to the <br />CMAR under the Contract may be assigned or pledged as collateral for a loan or other debt without <br />the consent of the Owner. In the event the CMAR has prior to execution of this Contract pledged <br />payments hereunder as collateral for any loan or debt, the CMAR shall advise the Owner, in <br />confidence if required by the CMAR, of the circumstances of the loan or debt, and arrange for the <br />subordination of the security interest of the creditor or lender to the Owner’s rights under this <br />Contract. The Owner may, without consent of the CMAR, assign the Contract to a lender providing <br />construction financing for the Project, if the lender assumes the Owner’s rights and obligations <br />under the Contract Documents. The CMAR shall execute all consents reasonably required to <br />Docusign Envelope ID: 5A9E3BC2-EAE1-4C35-82D9-B4D6A375FA78