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<br />Tha Co:nr•r.ctor and tFx Surety,,uintly and scve:aliy, biad them-
<br />~eh~es. .heis heirs, cxewtocs, admi~iistrators, succcss~~-s afxl
<br />a~signs to the Owner fu: the perf~o:ma~ue of the Construttioa
<br />Contra:t, which i~ inrorpar.iced herein by referencc.
<br />lf the Contr::rior performs the Consuuction Coniract, the
<br />Snre:y ::nd the Cu:nr~uor shall l~a~•e no oblig~tion u~xier t}~is
<br />Bor.d, exce~t to pariicipaic in confcren:~es as providrd in
<br />Subparagraph 3. I .
<br />!f th:Ye is no 4wner D:d,;i.lt, the Surrty'~ ohFigui~n under this
<br />Bon~ ahall ariseafter:
<br />3.1 Thc (lW~ncr ha: no:iticd ~he Contracto: and :he Surety a:
<br />its address tte.crilxci in Paragraph 10 below that thc
<br />Owner is curtsider.ng d:clari~g a Contruc:or 1?efaul! An~i
<br />has reque~tui and attempteC to srrange a confcrei~ce
<br />with ittc Con~r:ictt~r and thc Surrty w be h~:d no1 latcr
<br />than fifteen d~y; iftcr rc:.cipt uf ~ucl~ nwi~e to diu:~cs
<br />melhods c~f performirtg the Cue~~~n:cti~n Contrart. [f chr
<br />C)wner, the Comr~ctnr xnd the Surety agrca. the
<br />Con~rxio: shalt be allowed 2 reewn•rb7~ tirne to perfami
<br />the Comtruction Cur.iraet, but su~h an agrcement shall
<br />rrot w~ivc thc Owner's righl, if any, suhsequentl_y ti,
<br />declarc f ('ontractor Ucfault; and
<br />3.2 The Owner has drel::red a Comractu~ Ilefsult a~d
<br />furmatly ttrtrrinu~d the Co:~trttcio!'s ~igh[ :u comple:e
<br />thc contr.^.ct. 5uch C'omractnr Default xhall not bc
<br />dcciared earlicr thau twcnty days aftcr the CurttraGor
<br />::nd the Surety have TC~Clved notice as provic;zd in
<br />tiub~kuy~,m~{~li 3.1: a~td
<br />3»i "T'he Ownzr ha, sgrccd :o pa~ th~ Balar.cc of th: Cc,~tr~ct
<br />Prire Ic, Ihc Sarety in accordaRCe with tht tcrms of ihe
<br />Constrartinn Contr.~~t ~~r [o ~: contract<~r sei~~ctrd ~o
<br />pcrfom~ tt,c Cc~nstructioh Contract in arc~rlaace with
<br />the terms a( the con~sect w•ith ~he Urvner.
<br />VJhen th: Owner has salitfi.ci the randitions of Parugrap`- :l,
<br />the Surely shail promptly and at the Surot~~'s ~xpcns^ t:it~e one
<br />of th~ fullc~wing aetions:
<br />4.1 Air~.ngGfor thc Cixttreso~, Hith cortsens of the C)wner, ta
<br />perfoan and cc.mplete the Constructio~ Contrart: <.r
<br />4.2 Undertakc to perfonn ancl complrte th: ('~rstruction
<br />C:untnicz itself, through its ageats o: throaeh iadependenl
<br />CUII(T2C10T'S: OC
<br />4,3 (3biain bids or nego~iaied pro~osals from qualified
<br />co~tractors acetptahl~ to the Oa•ner fnr a contr.sct fe~r
<br />performance and rompletian c~f thr Construction
<br />Cuntract, ::rr.:nge for a coatract to be prepared for
<br />exeeution hy the Owner lncf :h_ wntractar ~elected wiih
<br />the Owner's coaeurr~nco, io be ~ecured wi~:~
<br />performr.rice uir~ paymeni bonds executed by~ a uaalified
<br />surdy oq~i~•alcnt to thc bonds ixsucAi on thc Construction
<br />Contrac:, and pay ro thc Uwncr the arnuurn of uamagct
<br />ati c!es~ribetl in Par.!kraph 6 in excess of the Balance ~~f
<br />thc Cvnvwct Price incurtcd by thc Owncr resul~in~ fro,n
<br />thc Cantractor's dc1'a~11; or
<br />4.a Waivr iis r.gfit tu perfu:rrt and cumplrtc, arrangc ior
<br />complction, or oht ;in a r.ew contractor and with
<br />reasonable promptar,s under the circumstancec:
<br />.1 After ittv~stigatinn, dcterminc tht .~mount fur
<br />which it may be li36te t~ thc Owner a~d, as soon
<br />as practicable atter tt~e ~moun: is determinecl.
<br />trndu paymcnt t:xrcl'or to thc Ow~ner, nr
<br />.2 Deny lia§ility ~n wholc or in part arul nchi(y dic
<br />Owner ;i~ing rea.u~m therrfor.
<br />lf tt~ Surety da:. not prcxeed as pme•:ded irt Pungr~ph 4 with
<br />reususable promp~ne.s, iir Surety shall be daemed tc~ he ~n
<br />ckf'ault an this Bond fiRcen days aftcr r~xrip: crf an u~diliun;~l
<br />writtcn rsotirr fro~n tt-e Owncr ta the Surrt~• <I,crrianding ihat th_
<br />Surety p:rfortn i~s obligu~i<n. ~rnier thic Bond. ::ad the nwn~.r
<br />shall'.~e entitled to ci~Fo-ce any rcr:~edy available to t}k Owner.
<br />I( the Surtty p:~~ceed~ as provi~ied in Subpar2graph 4.G, and the
<br />Owner refuses th~ paymcn: tend=rcd or the Suretr• has denied
<br />liability. in wholt or in part, wiihuut further nntice the Owner
<br />shali be entided to enfnrce any remedy available io the Owncr.
<br />Alter the Uwnxr hati termin~tul the C'ontracior'~ right ta
<br />c~mplete the Cu:uttvet*.on Cuntract. ;:r_d if ttx Surery e;eps to
<br />act under Subparagra~h 4.t, 4.2. or 4.; ahove, tiien ~he
<br />res}xmsihilitiec of the Surety ~a ~lie Owncr shall nol be grauer
<br />thao thoscx uf the Ccrttr.:ctar u:ufer the Cons~n~etion Cu~trzct.
<br />and the rcspo:ts+bilities of thr C)wner ~n the Surety sha11 rmt be
<br />grer:te: ttian thosr of the (lwner under the Constru:aion
<br />Cun~ract. To th~ }imi~ af the am.nnnl o:` ~his Road, but sublect to
<br />c~~mini:~nrnt ny the Owner of ihe -ialanct of the Cenuact Pri~e
<br />to mitigati<>rt of cost: anel d:smage, on thc Comtruc~ion
<br />Cuntract, di~ Surrq- is ~~bligated wit`~out d~plication for:
<br />b.l 'The responsibii:tics of thc C~~r.tr::ctor for cu:rrction of
<br />driutive work und comp)etion of i~e Cun~fructiou
<br />l ocitrac t;
<br />6.2 Additional legal, desi~n profeasic~n:~l and dclsy rosis
<br />resultin~ from ~he Coair;;;t<~r's llefauli, and resufting
<br />from thr actians or f,iilare tu ::~t o` the Surc~y um~er
<br />Paragraph o: an<i
<br />6.3 Liyuidated damage.s, or if no liquidat~d damsgai are
<br />.~cited in the C'onstru~tion Canir~cl, a:mai d•rmages
<br />caused hy dclaycu F~crfo~nan~c or ~onpcrfonr.ancc of
<br />11tC COrttr;lCibr.
<br />' The Surcty shall noi be I~sble tn the Orrn=r or uihers fc~r
<br />ubligatiuns or thr Cunlracie~r that are unrclated io -he
<br />Constru~tio~ Coititract, anC *.tn Balancr af thc Cu:ttruct Price
<br />shafl rtot tx red~tecl u= sre oi( on account of an}• tiucN uiirelated
<br />o~ligaii~ru. Vc~ ngh: uf .:c~ion shall accrue cn this Ao~d to any
<br />persoa or en:i~y o~fier th.:n :he C)KtltF ur it~ heirs, cxecutoss,
<br />admnnistrators ar su~ce~tiors.
<br />i The Surety hereby wa~vet noeice of any change, including
<br />change~ of time, to the Construc[ion Contract or to rel2ted
<br />subca~tracls, p~lrchasc ordcrs and othcr obii~a~ions_
<br />1 Any proceedin~, i.gal or equitabl:. undcr this Bortd may hc
<br />instituteu in any cuurt of ca.-r.p?teat jurisdiction m the loc:ation
<br />in which the work c,r part oF the wc~ri: is lc~cated cad shal! he
<br />ir~stituted within tv~o yzaxs :-:fter Cont:actor D~tault or wethin
<br />two ywrs after the Contr~ctor ceatied working or within two
<br />years a(tcr thc Surct)' rcfus~c o! f'ails u~ pcrfomi its ~bligations
<br />uodcr [his Rc~nd, whiche~•cr ~xcars 1Trst. 3f chc grc~visions uf
<br />this P.iragraph arc voic~ ur prohibited by law, thc minimum
<br />p~ria:i of limitatitm a~~ail~!e to snreties as a defcnsc in the
<br />juriseiir~ion o!'the suit s}~:~ll he::pp!icable.
<br />10 Notite tu ttit Surety, the Owner or the Contra_tor shall b~
<br />maileu ar deli~ertd to the address shown ~n the signature page.
<br />11 When this Bo:id has bec:n fumis~ed to com=ly witl~ a sta€utory
<br />ot other legal re4uiremen[ ii~ ;hr location where thc
<br />constntction wai tu tx pcrfom-cd. an}• pr~vision in this Borid
<br />c:ontlicting w~th said statutory or lrgs! recyuiremen: shall he
<br />deemed d=ietrd herefmm und pruvisiam ccuifbrming to su.h
<br />statulory or uth~•r leKal reyuiremen[ sha,l be deemed
<br />incorpora:ed herein. 7~he inten~ is that this Bond shali be
<br />construrJ ; s a staiurory tx~nd and na~ a, a common la~+• bond.
<br />12 DKFI'VIT]()~`S
<br />12.t Salaace of the C~~ltracl Price: Th~ t:.tal arnoun[ p3yable
<br />by thc Owncr tc~ thr Con~racror und^r the <'onswctioa
<br />Cc~atraci afeer sli pro~er :~djustments have bcea made,
<br />ir.ciuding allowance to the Cnntractor of ~ny smounts
<br />nreived ar to Ik rece:ved hy thr t)wner in scttlcment ot
<br />insu:an<r ar other cS~ims for camages to which che
<br />Ccmtr.~ctor i. rmitled, redu.ed by all vali3 and pro~tt
<br />payment. made tc~ or oa bcealf of tl:e Cont-arto- under
<br />thr Cons!ruction Ccxi~rac;.
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