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1. Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators,
<br />successors, and assigns to Owner to pay for labor, materials, and equipment furnished by Claimants for use
<br />in the performance of the Contract, which is incorporated herein by reference.
<br />2. With respect to Owner, this obligation shall be null and void if Contractor:
<br />2.1 Promptly makes payment, directly or indirectly, for all sums due Claimants, and
<br />2.2 Defends, indemnifies, and holds harmless Owner from all claims, demands, liens, or suits alleging
<br />non-payment by Contractor by any person or entity who furnished labor, materials, or equipment
<br />for use in the performance of the Contract, provided Owner has promptly notified Contractor and
<br />Surety (at the addresses described in Paragraph 12) of any claims, demands, liens, or suits and
<br />tendered defense of such claims, demands, liens, or suits to Contractor and Surety, and provided
<br />there is no Owner Default.
<br />3. With respect to Claimants, this obligation shall be null and void if Contractor promptly makes payment,
<br />directly or indirectly, for all sums due.
<br />4. Surety shall have no obligation to Claimants under this Bond until:
<br />4.1 Claimants who are employed by or have a direct contract with Contractor have given notice to
<br />Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to Owner,
<br />stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the
<br />claim.
<br />4.2 Claimants who do not have a direct contract with Contractor:
<br />1. Have furnished written notice to Contractor and sent a copy, or notice thereof, to Owner, within
<br />90 days after having last performed labor or last furnished materials or equipment included in the
<br />claim stating, with substantial accuracy, the amount of the claim and the name of the party to
<br />whom the materials or equipment were furnished or supplied, or for whom the labor was done or
<br />performed; and
<br />2. Have either received a rejection in whole or in part from Contractor, or not received within 30
<br />days of furnishing the above notice any communication from Contractor by which Contractor had
<br />indicated the claim will be paid directly or indirectly; and
<br />3. Not having been paid within the above 30 days, have sent a written notice to Surety (at the
<br />address described in Paragraph 12) and sent a copy, or notice thereof, to Owner, stating that a
<br />claim is being made under this Bond and enclosing a copy of the previous written notice
<br />furnished to Contractor.
<br />5. If a notice by a Claimant required by Paragraph 4 is provided by Owner to Contractor or to Surety, that is
<br />sufficient compliance.
<br />6. When a Claimant has satisfied the conditions of Paragraph 4, the Surety shall promptly and at Surety's
<br />expense take the following actions:
<br />6.1 Send an answer to that Claimant, with a copy to Owner, within 45 days after receipt of the claim,
<br />stating the amounts that are undisputed and the basis for challenging any amounts that are disputed.
<br />6.2 Pay or arrange for payment of any undisputed amounts.
<br />7. Surety's total obligation shall not exceed the amount of this Bond, and the amount of this Bond shall be
<br />credited for any payments made in good faith by Surety.
<br />8. Amounts owed by Owner to Contractor under the Contract shall be used for the performance of the
<br />Contract and to satisfy claims, if any, under any performance bond. By Contractor furnishing and Owner
<br />accepting this Bond, they agree that all funds earned by Contractor in the performance of the Contract are
<br />dedicated to satisfy obligations of Contractor and Surety under this Bond, subject to Owner's priority to use
<br />the funds for the completion of the Work.
<br />EJCDC C-615 Payment Bond (2007)
<br />Prepared by the Engineers Joint Contract Documents Committee.
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