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1, The Contractor and Surety, jointly and severally, bind Construction Contract, and pay to the Owner the amount of
<br /> themselves, their heirs, executors, administrators, successors, and damages as described in Paragraph 7 in excess of the Balance of
<br /> assigns to the Owner for the performance of the Construction the Contract Price Incurred by the Owner as a result of the
<br /> Contract,which is Incorporated herein by reference. Contractor Default;or
<br /> 2. If the Contractor performs the Construction Contract,the Surety 5.4 Waive its right to perform and complete,arrange for
<br /> and the Contractor shall have no obligation under this Bond,except completion, or obtain a new contractor, and with reasonable
<br /> when applicable to participate in a conference as provided in promptness under the circumstances:
<br /> Paragraph 3.
<br /> 5.4.1 After investigation, determine the amount for
<br /> 3. If there is no Owner Default under the Construction Contract, which it may be liable to the Owner and, as soon as
<br /> the Surety's obligation under this Bond shall arise after: practicable after the amount 1s determined,make payment
<br /> to the Owner;or
<br /> 3.1 The Owner first provides notice to the Contractor and
<br /> the Surety that the Owner is considering declaring a Contractor 5.4.2 Deny liability in whole or in part and notify the
<br /> Default. Such notice shall indicate whether the Owner is Owner,citing the reasons for denial,
<br /> requesting a conference among the Owner, Contractor, and
<br /> Surety to discuss the Contractor's performance. If the Owner 6. If the Surety does not proceed as provided in Paragraph 5 with
<br /> does not request a conference,the Surety may,within five(5) reasonable promptness,the Surety shall be deemed to be in default
<br /> business days after receipt of the Owner's notice,request such a on this Bond seven days after receipt of an additional written notice
<br /> conference. If the Surety timely requests a conference, the from the Owner to the Surety demanding that the Surety perform its
<br /> Owner shall attend, Unless the Owner agrees otherwise, any obligations under this Bond, and the Owner shall be entitled to
<br /> conference requested under this Paragraph 3.1 shall be held enforce any remedy available to the Owner, If the Surety proceeds as
<br /> within ten (10) business days of the Surety's receipt of the provided in Paragraph 5.4,and the Owner refuses the payment or the
<br /> Owner's notice, If the Owner, the Contractor, and the Surety Surety has denied liability,In whole or In part,without further notice
<br /> agree, the Contractor shall be allowed a reasonable time to the Owner shall be entitled to enforce any remedy available to the
<br /> perform the Construction Contract,but such an agreement shall Owner.
<br /> not waive the Owner's right, if any, subsequently to declare a
<br /> Contractor Default; 7. If the Surety elects to act under Paragraph 5,1,5.2,or 5.3,then
<br /> the responsibilities of the Surety to the Owner shall not be greater
<br /> 3.2 The Owner declares a Contractor Default,terminates than those of the Contractor under the Construction Contract, and
<br /> the Construction Contract and notifies the Surety;and the responsibilities of the Owner to the Surety shall not be greater
<br /> than those of the Owner under the Construction Contract. Subject to
<br /> 3.3 The Owner has agreed to pay the Balance of the the commitment by the Owner to pay the Balance of the Contract
<br /> Contract Price in accordance with the terms of the Construction Price,the Surety is obligated,without duplication for:
<br /> Contract to the Surety or to a contractor selected to perform the
<br /> Construction Contract, 7.1 the responsibilities of the Contractor for correction of
<br /> defective work and completion of the Construction Contract;
<br /> 4. Failure on the part of the Owner to comply with the notice
<br /> requirement in Paragraph 3.1 shall not constitute a failure to comply 7.2 additional legal, design professional, and delay costs
<br /> with a condition precedent to the Surety's obligations,or release the resulting from the Contractor's Default,and resulting from the
<br /> Surety from its obligations, except to the extent the Surety actions or failure to act of the Surety under Paragraph 5;and
<br /> demonstrates actual prejudice.
<br /> 7.3 liquidated damages, or if no liquidated damages are
<br /> 5, When the Owner has satisfied the conditions of Paragraph 3,the specified in the Construction Contract,actual damages caused by
<br /> Surety shall promptly and at the Surety's expense take one of the delayed performance or non-performance of the Contractor,
<br /> following actions:
<br /> 8. if the Surety elects to act under Paragraph 5.1,5.3,or 5,4,the
<br /> 5.1 Arrange for the Contractor, with the consent of the Surety's liability Is limited to the amount of this Bond.
<br /> Owner,to perform and complete the Construction Contract;
<br /> 9. The Surety shall not be liable to the Owner or others for
<br /> 5,2 Undertake to perform and complete the Construction obligations of the Contractor that are unrelated to the Construction
<br /> Contract itself,through Its agents or independent contractors; Contract,and the Balance of the Contract Price shall not be reduced
<br /> or set off on account of any such unrelated obligations, No right of
<br /> 5.3 Obtain bids or negotiated proposals from qualified action shall accrue on this Bond to any person or entity other than
<br /> contractors acceptable to the Owner for a contract for the Owner or its heirs, executors, administrators, successors, and
<br /> performance and completion of the Construction Contract, assigns.
<br /> arrange for a contract to be prepared for execution by the
<br /> Owner and a contractor selected with the Owners concurrence, 10, The Surety hereby waives notice of any change, including
<br /> to be secured with performance and payment bonds executed changes of time, to the Construction Contract or to related
<br /> by a qualified surety equivalent to the bonds issued on the subcontracts,purchase orders,and other obligations.
<br /> EJCUC C-610,Performance Bond
<br /> Copyright gr 2013 National Society of Professional Engineers,American Coundi of Engineering Companies,
<br /> end American Society of Civil Engineers.All rights reserved. 2 of 3
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