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<br /> 1 The Contractor and ihe Sure�y, joimly and sever�lly, which il may be liable to the Owner and, as
<br /> bind themselves, their heirs, executors, administrators, soon as practicable af�er ihe amount is deler-
<br /> successors and assigns to the Owner fc>r the performance mined, �ender payment therefor �o �he
<br /> of the Construction Contract,which is incorporated herein Owner, or
<br /> by reference. .2 Deny liability in whole or in part and notily ihe
<br /> 2 I( the Contractor performs the Construction Conlract, Owner citing reasons therefor.
<br /> the Surety and the Contractor shall have no obligation 5 If the Surety does not proceed as provided in Paragra��h
<br /> under this 13ond, except to participate in con(erences is 4 with reasonable promptness,the Surety shall be deemed
<br /> provided in Subparagraph 3.�1.
<br /> to be in de(ault on �his 13ond (ifteen days a(�er receipt of an
<br /> 3 I( there is no Owner De(ault, the Surety's obli�;ation additionai written notice from ihe Owner to ihe Surety
<br /> under this l3ond shall arise after. demanding that the Surety perform its obli�;ations under
<br /> this Bond, and the Owner shall be entilled to enforce any
<br /> 3.1 -fhe Owner has noti(ied �he Contractor and the remedy avail�ble to the Owner. If the Sureiy proceeds as
<br /> Surety a� its address descril�ed in Para�;r�ph 10 below �rovided in Subpara�;raph 4.4, and Ihe Owner relusc�s the
<br /> that the Owner is considering derl�ring a Coniractc�r r�yment tendered or �he Surery has denied li�bility, in
<br /> D��(ault ai�i has requested and �uem�led to arran�;e a ��,hol�°or in parl,without (urthcr notice ihe(�wncr shall bc
<br /> conlcrence with the Contractor and Ihc Surety tu bc ���i��led to enforce �ny remcdy availablc to lhc Ownc�r.
<br /> held n<>t later �lian (i(teen days af�er receipl o( such
<br /> notice tu discuss melh�>el,c�f per(��rmin�;the Ce�ns�ruc- 6 A(�er the Owner has l��rmin�Ied Ih�� Ce�nlracle�r'ti ri};ht
<br /> Iiun Cunlr�cL I( the Uwner, the Contr�c'lor ancl !he to complete Ihe Con5lruclion Cc�ntrarl, ,ine1 il Ihi� S�in�ly
<br /> Surety agree, the Conlraclor shall be alle�wed a reason- elects to act under Subparagraph 4."I, 4.2, e>r 4.3 ��cwe,
<br /> able time to perform the Constructic�n C:ontracl, but then the responsibilities of the Surety to the Owner ,hal�
<br /> such an agreement shall not waive the Owner's ri�;h�, ii not be greater than those of the Contractor under �he
<br /> any, subsequently to declare a Contractor De(ault; and Construction Contrac�, anel the respunsil>ilities o( �he
<br /> Owner to the Surety shall not be breai�r�han Uu>se ol�h��
<br /> 3.2 -fhe Owner has declared a Contractor Defaull and Owner under the Comtruclion Conlract.To the limit ol Ihe
<br /> (onnally Icrminated the Contractor's right tu complele amount of this Bond, but subject to commitment by Ihe '
<br /> the contract. Such Con�ractor Default shall not be cle- Owner o(the f3alance o(the Contract Price�o miti�;ation ol
<br /> clared earlier than twenty days af�er the Contractor and �osts and dama�;es on the Construction Contract,the Sure-
<br /> the Surety have received notice as provided in Sub- �y is obligated without duplication for: �
<br /> parabraph 3.1; and
<br /> 6.1 The responsibi�ities of the Contractor (or correc-
<br /> Th � Owner h�s a �reed to a the Balance o( the _
<br /> 3•3 < �, p Y tion o(defective work and completion ol the Coiistruc
<br /> Contract Price to the Surety in accordance with the tion Contract;
<br /> terms of the Construc�ion Contrart or to a contractor
<br /> selecled►o perform the Construction Contract in accor- 6.2 Additional legal, design pro(essional and delay
<br /> dance with Ihe terms o( Ihe cc>ntr�cl with the Owner. costs resullin�; from the Contractor's llefaull, and re-
<br />, sulting (rom the actions or failure to act c�l Ihc 5urciy
<br /> 4 When the Owner has sa�is(ied the conditions of Para- under Paragraph 4; and
<br /> graph 3, the Surety shall promptly and at Ihe Surely's cx-
<br /> pense take onc o( the following actions: 6.3 Liyuidated damages, or if no liquidated dama�;cs
<br /> are specified in the Construction Con�ract, 1C1U3I CI:3111-
<br /> 4.1 Arrange (or �he Contractor, with consent of Ilie ages caused by delayed performance or non-perlor-
<br /> Owner, to per(onn and complele the Construction mance of the Contractor.
<br /> Con�ract; o�
<br /> 7 The Surety shall not be liable�o the Owner or others for
<br /> 4.2 Undertake to per(onn and complete�he Construc- �bligations of the Contractor that are unrela�ed to the Con-
<br /> tion Contract itself, Ihrou�;h its agents or through inde- struction Contract, and the t�alance of the Contract Price
<br /> pendent contractors; or shall not be reduced or set off on account o( any such
<br /> 4.3 Obtain bids or nebotiated proposals from unrelated obligations. No ri�;ht o( action shall accrue on
<br /> yualified contractors acceptable to the Owner for a this [�ond to any person or entity other than the Owner or
<br /> contrac� for performance and completion o( the Con- its heirs, executors, administrators or successors.
<br /> struction Contract, arrange for a contract to be pre- g The Surety hereby waives notice of any change, includ-
<br /> pared for execution by Ihe Owner and the contrac�or �ng chan�;es of time, to tlie Construction Conlract c�r tu
<br /> se�ecte�l with the Owner's concurrence, Ie� be secur�d relaled subcontracts, purchase ord�rs and e>Iher obli��-
<br /> with perfonnance and p�ymenl be�nds execw��d by a
<br /> yuali(ied sumty eyuivalent Ic� the bonds issucd un the ������5'
<br /> Cons�ruction Contract, and pay lo Ihe Owner the 9 Any proceeding, legal or equitable, under �his Bond
<br /> amount o(damages as described in Paragraph 6 in ex- may be instituted in any court of competent jurisdic�ion in
<br /> cess o(the 13alance of the Contract Price incurred by the the location in which Ihe work or par�ol�he work is loca�ed
<br /> Owner resulting from the Contractor's de(auU; or and shall be inslitutcd within Iwo years after Cc�ntraclor
<br /> 4.4 Waive its ribht to per(orm and complele, arran�;e Uc(��ilt or within Iwo years a(ter Ihe Conlr�c�e>r ceas��cl
<br /> for completion, or obtain a new con�ractor and wi�h �'�rking or wilhin Iwo years afler Ihe Surety re(uses or lails
<br /> reasonable promptness under the circumstances: to per(orm its oblibations under�hi�l3ond, whichever oc-
<br /> curs (irsl. I( the provisions of Ihis I ara�,r�ph are void c>r
<br /> .1 After investigation, determine the amuunt for prohi�ited by law, �he minimum period of limitation�vail-
<br /> AIA DOCUMENT A312 • PERPOhMANCC 13UND AND PAYMENT 80ND • DECf_M13CR 19ti4 [D. •AIA �+�
<br /> THE AMCNICAN WSIITUTE OF ARCHffECT$, 173i NCW YORK AVE., N.W., WASIIINGTUN, 0.C. 2W06 A312-1984 2
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