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I The Contractor and the Surcty,lu+ntly and severally,hind thrm,clves. r+. Alter the Owner has tcrmin;atcd the Contractor's ny;hi to complete the
<br /> their heir,,exec wors.adminniruors. successors;anti assign,to the Owner Consaruetion Contract.and of the Surcty CICct,to ad under Sit
<br /> hp,aragr:aph
<br /> for the perform.ince of the Construction Contract. which a,incorpua,ued 4 I.4 2.oro t above.Ihcn the responsibilities of the Surers to the Owner
<br /> herein by reference. ,hall nol he greater than those of the Contractor under the Construction
<br /> ' If the Contractor perform, the Construction Contract. the Sorel% and Contract.and the responsibilities of the Owncr to the Surety,hall not he CID
<br /> the Contractor shall have no ohlig.ition under the, Bond. except it,par. greater than Ihosc of the Owner under the Construction Contract. To the
<br /> ticepaic in conference, is pros ided in Suhparagaiph i•1, limit of the amount of this Bond.but subject h+commitment by the Ownci
<br /> of the Balance of the Contract Price u) mita•ation of cost,and damages
<br /> I If there Is no(hs ner Urtault. the Sures} ,uhlagatiun under this ItunJ
<br /> ,hall.ansa after on the C'on%truction Contract,the Surety a,hligatcd without duplication
<br /> t lur
<br /> I The Owner has notified the Contractor.and the Surcty w it%address
<br /> described in Paragraph 10 below that the Owner Is con,adcnng h I voi and completion
<br /> of the Cori eructtor tsar correction of drl'ecusr
<br /> t.
<br /> declaring a Contractor Default and ha,requested and attempted - Addi and completion of the fes%i nal ;an dt:l i% C
<br /> to;arrange a conference with the Contractor;and the Surety to he
<br /> ('- Additional legal. design prufesseun.d and Jrl,ay costs resulting
<br /> held not later than fifteen days after receipt of such notice I0 from the Contractor's Default. and resulting tram the actions or
<br /> discuss method,of performing the Construction Contract. II the failure to act of the Suretv under Paragraph 4:and
<br /> Owner.the Contractor and the Surety :agree.the Contractor sh,dl h•= Liquidated damages. or if no liquidated damage,are specilied in
<br /> be allowed a reasonable time to perform the Construction Con-
<br /> tract.but such an agreement shall not wai,e the 0wncr's richt.of performance or non-performance of the Contractor.
<br /> ani.subsequently to declare a Contractor Default.and 7• The Surety shall not be liable to the Owner or others for obligations of
<br /> 3.2. The Owner has declared a Contractor Default and formalh ter- the Contractor that are unrelated to the Construction Contract.and the
<br /> minated the Contractor's right to complete the contract. Such Balance of the Contract Price shall not be reduced or set off on account
<br /> Contractor Default shall not be declared earlier than twenty da,s of am• such unrelated obligations. No right of action shall accrue on the,
<br /> Bond to any person or entity other than the Ow ner or its heirs.executors.
<br /> alter the Contractor and the Surety have recti%eJ notice as pro-
<br /> vide)in Subparagraph 3.I:and administrator-,.or successors.
<br /> 3.3. The Owner has agreed to pay the Balance of the Contract Price 8. The Surety hereby waives notice of any change. including change,of
<br /> to the Surety in accordance with the term, of the Construction tame. to the Construction Contract or to related subcontracts. purchase
<br /> Contract or to a contractor selected to perform the Construction orders and other obligations.
<br /> Contract in accordance with the terms of the contract with the 9 Any proceeding.legal or equitable,under this Bond may be instituted
<br /> Owner. in any court of competent jurisdiction in the location in which the work
<br /> y or part of the work is located and shall be instituted within two vears after
<br /> 4. When the Owner has satisfied the condition of Paragraph 3,the Suret
<br /> shall Contractor Default or within two years after the Contractor ceased work-
<br /> promptly and at the Surety's expense take one of the followtne ine or within two vears after the Surety refuses or fails to perform its
<br /> actions: obleeaticens under this Bond. whichever occurs first. If the provisions of
<br /> 4.1. Arrange for the Contractor.with consent of the Owner.to perform this Paragraph arc void or prohibited by law, the minimum period of
<br /> and complete the Construction Contract:or limitation available to sureties as a defense in the jurisdiction of the suit
<br /> 4.2. Undertake to perform and complete the Construction Contract shall be applicable.
<br /> itself,through its agents or through independent contractors:or 10. Notice to the Surety,the Ow ner or the Contractor shall be mailed or
<br /> 4.3. Obtain bids or negotiated proposals from qualified contractors delivered to the address shown on the signature page.
<br /> acceptable to the Ow ner for a contract for performance and com- 11. When this Bond has been furnished to comply with a statutory or -
<br /> pletion of the Construction Contract.arrange for a contract to be other legal requirement in the location where the construction was to be (
<br /> prepared for execution by the Owner and the contractor selected performed• any provision in this Bond conflicting with said statutory or
<br /> with the Owner's concurrence. to be secured with performance legal requirement shall be deemed deleted herefrom and provisions con-
<br /> and payment bonds executed by a qualified surety equivalent to forming to such statutory or other legal requirement shall be deemed
<br /> the bonds issued on the Construction Contract, and pay to the incorporated herein. The intent is that this Bond shall be construed as a
<br /> Owner the amount of damages as described in Paragraph 6 in statutory bond and not as a common law bond.
<br /> excess of the Balance of the Contract Price incurred by the Ow ner I2. Definitions.
<br /> resulting from the Contractor's default:or 12.1. Balance of the Contract Price:The total amount payable by the
<br /> 4.4. Waive its right to perform and complete.arrange for completion. Owner to the Contractor under the Construction Contract after
<br /> or obtain a new contractor and w ith reasonable promptness under all proper adjustments have been made,including allowance to
<br /> the circumstances: the Contractor of any amounts received or to be received by
<br /> I. After investigation.determine the amount for which it may be the Owner in settlement of insurance or other claims for dam-
<br /> liable to the Owner and,as soon as practicable after the amount ages to which the Contractor is entitled. reduced by all valid
<br /> is determined,tender payment therefor to the Owner:or and proper payments made to or on behalf of the Contractor
<br /> '_. Deny liability in whole or in part and notify the Owner citing under the Construction Contract.
<br /> reasons therefor. 12.2. Construction Contract:The agreement between the Owner and
<br /> If the Surety does not proceed as provided in Paragraph 4 with reason. the Contractor identified on the signature page, including all
<br /> ible promptness.the Surety shall be deemed to be in default on this Bond Contract Documents and changes thereto.
<br /> ifteen days after receipt of an additional written notice from the Owner 12.3. Contractor Default:FailureoftheContractor.which has neither
<br /> Q the Surety demanding that the Surety perform Its obligations under the-, been remedied nor waived,to perform or otherwise to comply
<br /> 3ond.and the Owner shall be entitled to enfurcr any remedy available to with the terms of the Construction Contract.
<br /> he Owner. If the Surety proceed,as provided in Subparagraph 4.4,and 12.4. Owner Default: Failure of the Owner, which has neither been
<br /> he Owner refuses the payment tendered or the Surety has denied liability. remedied nor waived,to pay the Contractor as required by the
<br /> •t whole or in part,without further notice the Owner shall be entitled to Construction Contract or to perform and complete or comply
<br /> nforce any remedy available to the Ow ner. with the other terms thereof.
<br /> :. Address and Telephone)
<br /> C -
<br /> Acordia OWNER'S REPRESENTATIVE (Architect. Engineer or other party):
<br /> Su01York Avenue South r WSB & Associates,Inc.
<br /> ite 200 (754
<br /> Minneapolis,MN 55435 Orilla 350 Westwood Lake Office
<br /> (612)830-30W 8441 Wayzata Boulevard M ls.
<br /> ,MN. 59426
<br /> Fax (612)830-3009 - (612)-541-4800
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