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.
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