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1. The Contractor and Surety, jointly and severally, bind 6. If a notice of non-payment required by Paragraph 5.1.1 is
<br /> themselves, their heirs, executors, administrators, given by the Owner to the Contractor,that is sufficient to
<br /> successors, and assigns to the Owner to pay for labor, satisfy a Claimant's obligation to furnish a written notice of
<br /> materials, and equipment furnished for use in the non-payment under Paragraph 5.11.
<br /> performance of the Construction Contract, which is
<br /> incorporated herein by reference,subject to the following 7. When a Claimant has satisfied the conditions of Paragraph
<br /> terms. 5.1 or 5.2, whichever is applicable, the Surety shall
<br /> promptly and at the Surety's expense take the following
<br /> 2. if the Contractor promptly makes payment of all sums due actions:
<br /> to Claimants, and defends, indemnifies, and holds
<br /> harmless the Owner from claims,demands, liens,or suits 7.1 Send an answer to the Claimant,with a copy to the
<br /> by any person or entity seeking payment for labor, Owner,within sixty (60) days after receipt of the
<br /> materials, or equipment furnished for use in the Claim,stating the amounts that are undisputed and
<br /> performance of the Construction Contract,then the Surety the basis for challenging any amounts that are
<br /> and the Contractor shall have no obligation under this disputed;and
<br /> Bond.
<br /> 7.2 Pay or arrange For payment of any undisputed
<br /> 3. If there is no Owner Default under the Construction amounts,
<br /> Contract,the Surety's obligation to the Owner under this
<br /> Bond shall arise after the Owner has promptly notified the 7.3 The Surety's failure to discharge Its obligations
<br /> Contractor and the Surety (at the address described in under Paragraph 7.1 or 72 shall not be deemed to
<br /> Paragraph 13) of claims, demands, liens, or suits against constitute a waiver of defenses the Surety or
<br /> the Owner or the Owner's property by any person or Contractor may have or acquire as to a Claim,
<br /> entity seeking payment for labor,materials,or equipment except as to undisputed amounts for which the
<br /> furnished for use in the performance of the Construction Surety and Claimant have reached agreement. If,
<br /> Contract,and tendered defense of such claims,demands, however, the Surety fails to discharge its
<br /> liens,or suits to the Contractor and the Surety. obligations under Paragraph 7,1 or 7.2,the Surety
<br /> shall indemnify the Claimant for the reasonable
<br /> 4. When the Owner has satisfied the conditions in Paragraph attorney's fees the Claimant incurs thereafter to
<br /> 3,the Surety shall promptly and at the Surety's expense recover any sums found to be due and owing to
<br /> defend,indemnify,and hold harmless the Owner against a the Claimant.
<br /> duly tendered claim,demand,lien,or suit.
<br /> S. The Surety's total obligation shall not exceed the amount
<br /> 5. The Surety's obligations to a Claimant under this Bond of this Bond, plus the amount of reasonable attorney's
<br /> shall arise after the following: fees provided under Paragraph 7.3,and the amount of this
<br /> Bond shall be credited for any payments made in good
<br /> 5.1 Claimants who do not have a direct contract with faith by the Surety.
<br /> the Contractor,
<br /> 9. Amounts owed by the Owner to the Contractor under the
<br /> 5.1.1 have furnished a written notice of non- Construction Contract shall be used for the performance
<br /> payment to the Contractor, stating with of the Construction Contract and to satisfy claims, if any,
<br /> substantial accuracy the amount claimed under any construction performance bond. By the
<br /> and the name of the party to whom the Contractor furnishing and the Owner accepting this Bond,
<br /> materials were, or equipment was, they agree that all funds earned by the Contractor in the
<br /> furnished or supplied or for whom the performance of the Construction Contract are dedicated
<br /> labor was done or performed, within to satisfy obligations of the Contractor and Surety under
<br /> ninety (90) days after having last this Bond,subject to the Owner's priority to use the funds
<br /> performed labor or last furnished for the completion of the work.
<br /> materials or equipment included in the
<br /> Claim;and 10. The Surety shall not be liable to the Owner,Claimants,or
<br /> others for obligations of the Contractor that are unrelated
<br /> 5.1.2 have sent a Claim to the Surety (at the to the Construction Contract, The Owner shall not be
<br /> address described in Paragraph 13). liable for the payment of any costs or expenses of any
<br /> Claimant under this Bond,and shall have under this Bond
<br /> 5.2 Claimants who are employed by or have a direct no obligation to make payments to or give notice on
<br /> contract with the Contractor have sent a Claim to behalf of Claimants, or otherwise have any obligations to
<br /> the Surety(at the address described in Paragraph Claimants under this Bond.
<br /> 13).
<br /> 11. The Surety hereby waives notice of any change,including
<br /> changes of time,to the Construction Contract or to related
<br /> subcontracts,purchase orders,and other obligations,
<br /> FJCDC°C-615,Payment Bond
<br /> Copyright 412013 National Society of Professional Engineers,American Council of Engineering Companies„
<br /> and American Society of Clvg Engineers. All rights reserved. 2 of 3
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