* 4. The Contractor and the Surety, jolnity and saverelly,
bind themselves, their heirs, executors, adatinisirators,
guiecessoss, ard assigns to the Quner for the performance
af the Construction Contract, which is incosporated herein
by reference.
2, [the Contractor parforms the Construction Contract,
the Surety and the Contractor shal have no obligation
under this Bond, except to participate in conferences 25
3. Where is no Qwner Default, the Suraly's obligation
under this Bond shall arise aftar:
3.4 The Gwner hes notified the Contractor and the
Suraty alils address described in Paragraph 19 batow
that the Ownaris considering declaring a Conkrector
Dafault and has requested and attempted to arrange &
conference with tha Goniractor and the Surely to be
hetd not later than Bfteen days alter receipt of such
notice to discuss methods of performing the Construc-
tion Contract. HW the Gwnar, the Contractor and ihe
Surely sores, tha Contrector shail be allowed a mason-
2bta tima to perform the Construction Contract, but
such en egreemant shail not waive the Owner's night, i
any, subsequently to daciare a Contractor Dafeult and
3.2 The Owner has declared a Contractor Default and
formally taminated the Contractors sight to completa
the contract. Such Contractor Default shall not be da-
lared aesler than twanly days after the Contractor and
the Surety have received notice as provided In Sub-
paragraph 3.1; and
3,3 The Ownar has agreed to pay the Balance of the
Contract Prise to the Suraty in accoranca with the
tems of the Construction Contract or to @ contractor
selected to perform the Construciian Contract in socor-
dance wih the tanms of the contract with tha Owner,
4. Whan the Qwnar has satisfied the conditions of Para-
graph 3, the Surety shall promplly and at the Surety's ex-
panse teke one of tha following actions:
44 Arrange for ihe Contractor, with consent of the
Ovmer, to porform and complete the Construction
Contract; or
4.2 Undertake fo perform and complate the Construc-
tion Contract itself, through its agents or through Inde-
pendent contractors; ar
23 Obtain bids or negotiated proposals from
qualified contractors scceptahie to the Owner for 2
contrac! for performance end completion of the Con-
struction Contract, erranga for a contract to be pre-
parad for execution by the Owner and the contractor
selected with the Owners concurrence, to be secured
with performance end paymant bands executed by a
qualified surety equivalent to the bonds tsaued on the
Construction Contrect, and pay to the Owner tha
amount of damages as describad in Paragraph 6 in ax-
cess of ihe Balance of tha Contract Price Incurred by the
Owner resulting from tha Contractor's default; or
4.4 Waive its rights to perform and compilela, arange
for eomptation, or obtain a new contractor and with
resconsble prompiness under the circumsiances.
<4 After investigation, determine the amount for which R may be
fable to the Owner and, as soon ae practicable after the amount is
determined, tender payment tharefore to tha
Owners, or
2 Deny flabllity in whole or in part end notify the Owner
citing reasons therafore.
&, Ifthe Surety does not proceed es provided in Paragraph
4 with reasoneble prompiness, the Surety shall be deemed
to ba in default on this Bond filaen days alter receipt of en
additonal written notice fron the Quner to the Suraty
damending thal the Surely perform its obfigations under
this Bond, and the Over shell ba entitled to enforce any
remedy avaitebla to the Owner. If tha Surety proceeds os
provided in Subparagraph 4.4, and tre Owner refuses tha
payment tendered of the Surety has denied liability, In
whale or in part, wilhout further nolice the Owner shail be
entilled to enforce eny remedy available to the Owner.
6. After the Over has terminated the Contractor's fight
to complata the Construction Contrect, and if the Suraty
elects lo act under ph 4.1, 4.2, or 4.3 above,
than tha responsibilities of the Surety to the Guner shall
not be greater than those of the Contracior under the
Construciion Contract, and the responsibilities of the
Quer to the Surety shall not he omater than those of tha
Owner under the Construction Contract. To the limit of the
amount of this Bond, but subject to commitment by the
Owner of tha Balance of the Contract Price to mitigalion of
cosis and damagas on the Construction Contract, the Sure-
ty is obligated without duplication for
6.2 The responsibiilies of the Contractor for carrec-
tion of defective work and comptation of tha Construc-
tion Ganiract,
8.2 Additional legal, design professional and detay
costs resulling from the Contractor's Default, and re-
sulting frorn the actions or failure to ect of tha Sunaty
under Paragraph 4; and
63 Liquidated damages, or lino liquidated damages
ere specified In the Construction Contract, actual dam-
ages caused by delayed performance or non-perior-
mance of the Contractor.
7, The Surety shell not be liable to the Qwnar or others for
obligations of the Contractor that are unretated to the Con-
struction Contract, and tha Balance of the Contract Price
shall not ba reduted or eat off on account of any such
unrelated obligations. No right of action shall secre on
this Bond fo any pargon or entity other than the Gwar or
its heirs, axecutors, administrators, of successors.
8. The Surety heraby welves notice of any change, Includ-
ing changes of time, to the Construction Contract or to
ralated subcontracts, purchase orders and olhar obligations.
$, Any proceeding, legal or equitable, under this Bond may
be instituted in any court of compatent jurisdiction ia
the [oeation in which the work or part of the work is located
and shall be instituted within two years after Contractor
Defautl or within bwo years after the Canlractor ceased
working or within two yeass after the Surely refuces or Ieils
tg perform its chtigations under this Bond, whichaver oc-
curs firsL if the provisions of this Paragraph are void or
prohibited by law, the minimum period af hmitation avail-
DOCUMENT Aad PERFORMANCE BOHO AND PAYMENT GOHD DECEMBER 1824 ED.
“THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW VORK AVE. HW
Twin PRENTHED -RLERCH 4897
Ala
., WASHINGTON, 0.020005
A 312-1884 2
