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6 After the Owner has tenuinated the Contractor's right to complete the Construction Contract, and if the Surety elects to act under Subparagraph 4.],4.2, or 4.3 above, then the responsibilities of the Surety to the Owner shall not he greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under 1I1e Construction Contract. To the limit oflhe amount of this Bond, but subject 4.2 Undel1ake to perform and complete the Construction to commitment by the Owner of the Ba]ance of the Contract Contract itself, through its agents or through independent Price to mitigation of costs and damages on the Construction AlA DOCUMENT A312' PERFORMANCE BOND AND PAYMENT BOND' DECEMBER 1984 ED . AlA @. THE AMERICAN INSTITUTE O. ARCHtTECTS, 1735 NEW YORK AVENUE. N.W., WASIIINGTON. D.C., 20006-5292 . THIRD PRINTING' MARCH 1987. WARNING; Unlicensed photocopying viol(ltes U.s. copyright Jaws and is subject to legal proseclltion. This document was electronically produced with permission of the AlA and cun be reproduced without violation until the dllte of expiration as noted below. E]ectronic Format A312-1984 User Document: HYDRO-PERf. DOC -- 111l51l999. AlA License Number 110988, which expires on 12/6/2000 -. Page #2 party): 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs~ executors, administrators, slIccessors and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. 2 If tbe Contractor performs the Construction Contract. the Surety and the Contractor shall have no obligation under this Bond, except to pm1icipate in conferences as provided in Subparagraph 3.1. 3 ]f there is no Owner Defau]t, tbe Surety's ohligation under this Bond shall arise after: 3.1 The Owner bas notified 1I1e Contractor and the Surety at its address described in Paragrapb 10 below that the Owner is considering declaring a Contractor Default and has requested and attempted to arrange a conference with the Contractor and the Surety to be be]d not later than fifteen days after receipt of such notice to discuss methods of performing the Construction Contract. If the Owner, the Contractor and the Surety agree, the Contractor shall. be allowed a reasonable time to perform the Construction Contract, but such an agreement shaH not waive the Owner's right, if any, subsequently to declare a Contractor Default; and 3.2 The Owner has declared a Contractor Default and formally terminated the Contractor's right to complete the contract. Such Contractor Defau]t shall not be declared earlier than twenty days after the Contractor and the Surety have received notice as provided in Sub-paragraph 3.1; and 3.3 111e Owner has agreed to pay the Balance of the Contract Price to the Surety in accordance with the terms of the Construction Contract or to a contractor selected to perform the Construction Contract in accordance with the terms of the contract with the Owner. 4 Wben the Owner bas satisfied the conditions of Paragraph 3, the Surety shall promptly and at tbe Surety's expense take one of the following actions: 4.1 Arrange for tbe Owner, to perform Contract; or Contractor, with consent of the and complete the Construction contractors; or e 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for perfonnance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and the contractor selected with the Owner's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragrapb 6 in excess of tbe Ba]ance of the Contrac[ Price incurred by the Owner resulting from the Contractorls default; or 4.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the circumstances: .1 After investigation, determine tlle amount for whicb it may be liable to the Owner and, as soon as practicable after the amount is determined, tender payment therefor to the Owner; or .2 Deny liability in whole or in part and notify the Owner citing reasons therefor. 5 If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness. the Surety shall be deemed to be in default on this Bond fifteen days after receipt of an additional written notice trom the Owner to the Surety demanding that the Surety perform its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety proceeds as provided in Subparagraph 4.4, and the Owner refuses the payment tendered or the Surety has denied liability, in whole or in part, without further notice the Owner shall be entitled to enforce any remedy available to the Owner.