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<br />I. The Contractor and the Surety, jointly, and severally, bind themselves,
<br />their heirs, executors, administrators, successors and assigns to the Owner for
<br />he performance of the Cinrstruction Contract, which is incorporated herein by
<br />.cference_
<br />>. If the Contractor performs the Construction Conn'act, the Surety and the
<br />: ontractor shall have no obligation under this Bond, except to participate in
<br />:onfcrenies as provided in Subparagraph 3.1
<br />), If there is nn Owner Default, the Surety's obligation outer this Bond shall
<br />arise after;
<br />3 -1. The Owner has viodfied the Contractor and die Sa ery at its
<br />address described in Paragraph 10 below, that the Owner is
<br />considering declaring a COPMCtfir Default and has requested and
<br />attempted to arrange a conference with the Contractor and the
<br />Surety to be held not later than fifteen days after receipt of such
<br />notice to discuss methods of performing the Construction
<br />Contract. if the Owner, the Caontractor and the Surety agree, die
<br />Connractor shall be allowed a reasonable time to perform the
<br />Construction Contract, but such an agreement shall not waive the
<br />Owucr's right, if any, subsequently to declare a Contractor
<br />Default: and
<br />12. The Owner has dccl;4red a Contractor Default and formally
<br />terminated the Contractor's right to complete the contract. Such
<br />Contractor Default shall not be declared earlier than twenty days
<br />after the Contracor and the Surety have received notice as
<br />provided in Subparagraph 3.1: and
<br />3.3. The Owner has agreed to pay the Balance of the COnitract Price to
<br />the Surcty in accordance with the terns of the Construction
<br />Conu,act or to a contactor selected to perform the Construction
<br />Contract in accordance with the terns of the contract with die
<br />Owner.
<br />4. Whcn the Owner has satisfied the conditions of Paragraph 3, the Surety
<br />ihall promptly and at the Surety's expense take one of the following actions:
<br />4.1. Arrange for Lite Contactor, with consent of the Owner, to
<br />perfor►n and complete the Construction Contract: or
<br />4.2_ Undertake to perfonu and complete the Construction Contract
<br />itself, through its agents or through independent contractors: or
<br />4.3- Obtain bids or negotiated proposals from qualified contractors
<br />acceptable to the Owner for a contract for performance and
<br />completion of the Construction Contract, arrange for a contract to
<br />be prepared for execution by the Owner and the contactor
<br />selected with die Owner's concurrence, to be secured with
<br />performance and payment bonds executed by a qualified surety
<br />equivalent to the bonds issued on die Construction Contract, and
<br />pTay to the Owner the amount of damages as described in
<br />Paragraph 6 in excess of the Balance of the Contract Price
<br />incurred by the Owner resulting from the Contractor's dctault:
<br />or
<br />4 "4_ Waive its right to perform and complete, arrange for completion,
<br />or obtain a new comactor and with reasonable promptness under
<br />dre circumstances:
<br />1. After investigALion, determine the amount for which it may
<br />be liable to the Owner and, as soon as practicable after the
<br />amount is determined, tender payment therefor to die
<br />Owner: or
<br />2. Deny liability in whole or in part and notify the Owner
<br />citing reasons therefor.
<br />5. If tic Surety does not proceed as provided in Paragraph 4 with reasonable
<br />promptness, the Surety shape be deemed to be in default on this Bond fifteen
<br />days after receipt of an additional written notice from the Owner to the Su sty
<br />demanding that the Surety perform its obligaadons under this Bond, and the
<br />Owner shall be entitled to enforce any remedy available to the Owner. If the
<br />Stucry proceeds as provided in Subparagraph 4.4, and the Owner refuses the
<br />payment tendered or the Surety has denied liability, in whole or in part,
<br />wirhoot further notice the Owner shall be entitled to enforce any remedy
<br />available to the Owner,
<br />6_ After ilia Owner has terminated the Contractor's right to complete the
<br />Construction Contract, and if the Surety elects to act under Subparagraph 4.1,
<br />4.2, or 4.3 above, then the responsibilities of the Surety to the Owner shall not
<br />be greater rhaa those of the Contractor under the Construction Contract, and
<br />the resptinsibilitics of the Owner to the Surety sliall not be greater than those of
<br />the Owner under the Construction Contract. 'ro the limit of the anhount of this
<br />Bond, but subject to conunitment by the Owner of the Balance of the Cunnraa
<br />trice to mitigation of uoims and damages on die Construction Contract, the
<br />Surety is obligated without duplication for:
<br />6.1. The responsibilities of the Contractor for correction of defective
<br />work and completion of the Construction Contraur
<br />6.2. Additional legal, design professional and delay costs resulting,
<br />from the Contractor's Dcfa ilt, and rmuliing from die actions or
<br />failure to act of the Surety under Paragraph 4: and
<br />6.3. Liquidated darnagm, or if no liquidated damages are specified in
<br />tie Construction Contract, actual damages caused by delayed
<br />performance or non - performance of the Contractor.
<br />7. The Surety shall not be Gable to the Owner or others for obligations of the
<br />Conumctor that are unrelated to the Construction Contract, and the Balance of
<br />the Conhreu Price shall not be reduced or set off on account of any such
<br />unrelated obligations. No right of action shall accrue on this Bond to any
<br />person or cntity other than the Owner or its heirs', executor., administrators, or
<br />successors,
<br />8, The Surety hereby waives notice of any change, including changes of
<br />time, to the Construction Contract or to related subcontracts, purchase orders
<br />and other obligations.
<br />9. Any proceeding, legal or equitable, tinder this Bond may be instituted in
<br />any court of competent jurisdiction in the location in which the work or part of
<br />the work is located and shall be instinumd within two years after Contractor
<br />Default or within two yearn, after the Contractor ceased wonting or within two
<br />years after the Surety refuses or fails to perform its obligations under this
<br />Bond, whichcver occurs first. If the provisions of limitation available to
<br />sureties as a defense in the jurisdiction of the suit shall be applicable.
<br />10_ Notice to the Surety, the Owncr or the Contractor shall be mailed or
<br />delivered to the address shown on the signature page.
<br />11_ When this Bond has been furnished to comply with a statutory or other
<br />legal requirement in the location where the construction was to be performed,
<br />any provision in this Bond conflicting with said statutory or legal requirement
<br />shall be deemed deleted hcrcfrom and provisions conforming to ouch statutory
<br />or other legal requirement shall be deemed incorporated herein, The intent is
<br />that this Bond shall be construed as a statutory bond and not as a common law
<br />bond,
<br />12. Dctinitionr""
<br />12.1. Balance of tie Contract Price: The total amount payable by die
<br />Owner to the Contractor under the Construction Contact after all
<br />proper adjaetneam have been made, including allowance to the
<br />Contractor of any amounrs received or to be received by the
<br />Owner in settlement of insurance or other claims for damage& to
<br />which the Contractor is entitled, reduced by all valid and proper
<br />payments made to or on behalf of the Contractor wider the
<br />Construction Contract.
<br />12.2_ Construction Contract: The agreement between the Owner and
<br />the Contractor identified on the signature page, including all
<br />Contract Documents and changes thereto.
<br />12.3. Contractor Default: Failure of the Contractor, which has neither
<br />been remedied nor waived, to perform or otherwise to comply
<br />with the terrmc of tie Construction Contact.
<br />12.4_ Owner Default: Failure of the Owner, which has neither been
<br />remedied nor waived, to pay the Contractor as required by the
<br />Construction Contract or to perform and complete or comply with
<br />the other terms thereof,
<br />FOR INFORMATION ONLY —Name Address and Telephone)
<br />( P )
<br />GE V1' or B1�4tert' & Associates OWNER'S REPRE- SLNTATIVE (Architect, Engineer or other parry);
<br />ie son,
<br />5979 Northwest 151st Street, #105
<br />Miami Lakes, Florida 33014
<br />(305) 722 -2663
<br />E7CDC No. 1910 -28A (1984 Edition)
<br />Prepared through the joint efforts of the Surety Association of America, Engineers' Joint Contraal Documents Committee, The Associated
<br />General Contactors of Amctica, American Institute of Architects, American Subcontractors Association, and the Associated Specialty
<br />Contractors.
<br />March 2007
<br />00601 -2
<br />03- 4122nD
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