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I. The Contractor and the Surety, jointly and severally, bind themselves, their <br />heirs, executors, administrators, successors and assigns to the Owner for the <br />performance-of the Construction Contract, which is incorporated herein by <br />reference. <br />2. With respect to the Owner, this obligation shall be null and void if the <br />Contractor: <br />2.1. Promptly makes payment, directly or indirectly, for all sums due <br />Claimants, and <br />2.2. Defends, indemnifies and holds harmless the Owner from all claims, <br />demands, liens or suits by any person or entity who furnished labor, <br />materials or equipment for use in the performance of the Construction <br />Contract, provided the Owner has promptly notified the Contractor <br />and the Surety (at the address described in Paragraph 12) of any <br />claims, demands, liens or suits and tendered defense of such claims, <br />demands, liens or suits to the Contractor and the Surety, and provided <br />there is no Owner Default. <br />3. With respect to Claimants, this obligation shall be null and void if the <br />Contractor promptly makes payment, directly or indirectly, for all sums due. <br />4. The Surety shall have no obligation to Claimants under this Bond until: <br />4.1. Claimants who are employed by or have a direct contract with the <br />Contractor have given notice to the Surety (at the address described in <br />Paragraph 12) and sent a copy, or notice thereof, to the Owner, stating <br />that a claim is being made under this Bond and, with substantial <br />accuracy, the amount of the claim. <br />4.2. Claimants who do not have a direct contract with the-Contractor: <br />I. Have furnished written notice to the Contractor and sent a copy, <br />or notice thereof, to the Owner, within 90 days after having last <br />performed labor or last furnished materials or equipment <br />included in the claim stating, with substantial accuracy, the <br />amount of the claim and the name of the party to whom the <br />materials were furnished or supplied or for whom the labor was <br />done or performed: and <br />2. Have either received a rejection in whole or in part from the <br />Contractor, or not received within 30 days of furnishing the <br />above notice any communication from the Contractor by which <br />the Contractor has indicated the claim will be paid directly or <br />indirectly: and <br />3. Not having been paid within the above 30 days, have sent a <br />written notice to the Surety (at the address described in <br />paragraph 12) and sent a copy, or notice thereof, to the Owner, <br />stating that a claim is being made under this Bond and enclosing <br />a copy of the previous written notice furnished to the <br />Contractor. <br />5. If a notice required by Paragraph 4 is given by the Owner to the Contractor <br />or to the Surety, that is sufficient compliance. <br />6. When the Claimant has satisfied the conditions of Paragraph 4, the Surety <br />shall promptly and at the Surety's expense take the following actions: <br />6.1. Send an answer to the Claimant, with a copy to the Owner, within 45 <br />days after receipt of the claim, stating the amounts that are undisputed <br />and the basis for challenging any amounts that are disputed. <br />6.2. Pay or arrange for payment of any undisputed amounts. <br />7. The Surety's total obligation shall not exceed the amount of this Bond, and <br />the amount of this Bond shall be credited for any payments made in good faith <br />by the Surety. <br />8. Amounts owned by the Owner to the Contractor under the Construction <br />Contract shall be used for the performance of the Construction Contract and to <br />satisfy claims, if any, under any Construction Performance Bond. By the <br />Contractor furnishing and the Owner accepting this Bond, they agree that all <br />funds earned by the Contractor in the performance of the_ Construction_Cont = , <br />are dedicated to satisfy obligations of the Contractor and the Surety under this <br />Bond, subject to the Owner's priority to use the funds for the completion of the <br />work. <br />9. The Surety shall not be liable to the Owner, Claimants or others for <br />obligations of the Contractor that are unrelated to the Construction Contract. <br />The Owner shall not be liable for payment of any costs or expenses of any <br />Claimant under this Bond, and shall have under this Bond no obligations to make <br />payments to, give notices on behalf of, or otherwise have obligations to <br />Claimants under this Bond. <br />10. The Surety hereby waives notice of any change, including changes of time, <br />to the Construction Contract or to relate subcontracts, purchase orders and other <br />obligations. <br />11. No suit or action shall be commenced by a Claimant under this Bond other <br />than in a court of competent jurisdiction in the location in which the work or part <br />of the work is located or after the expiration of one year from the date (1) on <br />which the Claimant gave the notice required by Subparagraph 4.1 or Clause 4.2 <br />(iii), or (2) on which the last labor or service was performed by anyone or the last <br />materials or equipment were furnished by anyone under the construction <br />Contract, whichever of (1) or (2) first occurs. If the provisions of this Paragraph <br />are void or prohibited by law, the minimum period of limitation available to <br />sureties as a defense in the jurisdiction of the suit shall be acceptable. <br />12. Notice to the Surety, the Owner or the Contractor shall be mailed or <br />delivered to the address shown on the signature page. Actual receipt of notice by <br />Surety, the Owner or the Contractor, however accomplished, shall be sufficient <br />compliance as of the date received at the address shown on the signature page. <br />13. When this Bond has been furnished to comply with a statutory or other <br />legal requirement in the location where the construction was to be performed, <br />any provision in this Bond conflicting with said statutory or legal requirement <br />shall be deemed deleted herefrom and provisions conforming to such statutory or <br />other legal requirement shall be deemed incorporated herein. The intent is, that <br />this Bond shall be construed as a statutory bond and not as a common law bond. <br />14. Upon request by any person or entity appearing to be a potential <br />beneficiary of this Bond, the Contractor shall promptly furnish a copy of this <br />Bond or sha11 permit a copy to be made. <br />15. DEFINITIONS <br />15.1. Claimant: An individual or entity having a direct contract with the <br />Contractor or with a subcontractor of the Contractor to fumish labor, <br />materials or equipment for use in the performance of the Contract. <br />The intent of this Bond shall be to include without limitation in the <br />terms "labor, materials or equipment" that part of water, gas, power, <br />light, heat, oil, gasoline, telephone service or rental equipment used in <br />the Construction Contract, architectural and engineering services <br />required for performance of the work of the Contractor and the <br />Contractor's subcontractors, and all other items for which a <br />mechanic's lien may be asserted in the jurisdiction where the labor, <br />materials or equipment were furnished. <br />15.2. Construction Contract: The agreement between the Owner and the <br />Contractor identified on the signature page, including all Contract <br />Documents and changes thereto. <br />15.3. Owner Default: Failure of the Owner, which has neither been <br />remedied nor waived, to pay the Contractor as required by the <br />Construction Contract or to perform and complete or comply with the <br />other terms thereof. <br />(FOR INFORMATION ONLY —Name, Address and Telephone) <br />AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other a <br />P rh'): <br />EJCDC No. 1910 -28B (1984 Edition) 00600 -2 03-4138.13 <br />Prepared through the joint efforts of the Surety Association of America, Engineers' Joint Contract Documents Committee, The Associated <br />General Contractors of America, American Institute of Architects, American Subcontractors Association, and the Associated Specialty <br />Contractors. <br />