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<br />1 The Contractor and the Surety, jointly and severally bind
<br />themselves, their heirs, executors~ administrators, successors
<br />and assigns to the Owner to pay for labor~ materials and
<br />equipment furnished for use in the performance of the
<br />Construction Contract, which is incorporated herein by
<br />reference.
<br />
<br />2 With respect to the Owner, tilis obligation shall be null
<br />and void if the Contractor:
<br />
<br />2.1 Promptly makes payment, directly or indirectly, for
<br />all sums due Claimants, and
<br />
<br />2.2 Defends, indemnifies and holds harmless the Owner
<br />from claims, demands, liens or suits by any person or
<br />entity whose claim, demand~ lien or suit is for the
<br />payment for labor, materials or equipment furnished for
<br />use in the performance of the Construction Contract,
<br />provided the Owner has promptly notified the Contractor
<br />and the Surety (at the address described in Paragraph 12)
<br />of any claims, demands, liens or suits and tendered
<br />defense of such claims, demands, liens or suits to the
<br />Contractor and the Surety, and provided there is no
<br />Owner Default.
<br />
<br />3 With respect to Claimants, this obligation shall be null
<br />and void ifthe Contractor promptly makes payment, directly
<br />or indirectly, for all sums due.
<br />
<br />4 The Surety shall have no obligation to Claimants under
<br />this Bond until:
<br />
<br />4.1 Claimants who are employed by or have a direct
<br />contract with the Contractor have given notice to the
<br />SlIfety (at the address described in Paragraph 12) and
<br />sent a copy, or notice thereof, to the Owner, stating that a
<br />claim is being made under this Bond and, with
<br />substantial accuracy, the amount ofthe claim.
<br />
<br />4.2 Claimants who do not have a direct contract with the
<br />Contractor:
<br />
<br />.2 Have either received a rejection in whole or i]~
<br />part from the Contractor. or not received within
<br />30 days of furnishing the above notice any
<br />communication from the Contractor by which
<br />the Contractor has indicated the claim will bc
<br />paid directly or indirectly; and
<br />
<br />.3 Not having been paid within the above 30 days,
<br />have sent a written notice to the Surety (at the
<br />address described in Paragraph ] 2) and sent a
<br />copy, or notice thereof, to the Owner, stating
<br />that a claim is being made under this Bond ,md
<br />enclosing a copy of the previous written notice
<br />furnished to the Contractor.
<br />
<br />5 If a notice required by Paragraph 4 is given by the Owner
<br />to the Contractor or to the Surety, that is sufficient
<br />compliance.
<br />
<br />6 Wllen the Claimant has satisfied the conditions of
<br />Paragraph 4, the Surety shall promptly and at the Surety's
<br />expense take the following actions:
<br />
<br />6,1 Send an answer to the Claimant, with a copy to the
<br />Owner, within 45 days after receipt of the claim, statin~
<br />the amounts that are undisputed and the basis foW
<br />challenging any amounts that are disputed.
<br />
<br />6.2 Payor arrange for payment of any undisputed
<br />amounts_
<br />
<br />7 The Surety's total obligation shall not exceed the amount
<br />of this Bond, and the amount of this Bond shall be credited
<br />for any payments made in good faith by the Surety.
<br />
<br />8 Amounts owed by the Owner to the Contractor under the
<br />Construction Contract shall be used for the performance of
<br />the Construction Contract and to satisfy claims, iC any, under
<br />any Construction Performance Bond. B}' the Contractor
<br />furnishing and the Owner accepting this Bond, they agree that
<br />all funds earned by the Contractor in the performance of the
<br />Construction Contract are dedicated to satisfy obligations of
<br />the Contractor and the Surety under this Bond, subject to the
<br />Owner's priority to use tlle funds for tlle completion of the
<br />work.
<br />
<br />.1 Have furnished written notice to the Contractor
<br />and sent a copy, or notice thereof, to the Owner,
<br />within 90 days after having last performed labor
<br />or last furnished materials or equipment
<br />included in the claim stating, with substantial
<br />accuracy, the amount of the claim and the name 9 The Surety shall not be liable to the Owner, Claimants or
<br />of the party to whom the materials were othcrs for obligations oC the Contractor that are unrelated to
<br />furnished or supplied or for whom the labor was the Constmction Contract. The Owner shall not be liable for
<br />done or performed; and payment of any costs or expenses of any Claimant under this
<br />
<br />AlA DOCUMENT A312. PERFORMANCE BONO AND PAYMENT BOND. DECEMBER 1984 ED. . AlA @. TIiE AMERICAN JNSTITUTE 0"
<br />ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C.. 20006-5292 . THtRD PRINTING' MARCH 1937. WARNING: Unl;censed'W
<br />photocopying violates U.S. copyright laws and is subject to legal prosecution. This document was electronically produced with permission of1he AlA and can be
<br />reproduced without violation until the date of expiration as no1ed below.
<br />Electronic Format A312-1984
<br />User Document: HYDRO-PERF.DOC -- ] 1115/1999. AlA License Number 110988, which expires on 12/6/2000 -- Page #6
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