Section Ix. Annex To The Particular Conditions - Contract Forms Page 7
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Option 2: Performance Bond
By this Bond____________________ as Principal (hereinafter called “the Contractor”)
and______________________________________________________________
as Surety
]
(hereinafter called “the Surety”), are held and firmly bound unto_____________________
]
as Obligee (hereinafter called “the Employer”) in the amount of __________________, for
the payment of which sum well and truly to be made in the types and proportions of
currencies in which the Contract Price is payable, the Contractor and the Surety bind
themselves, their heirs, executors, administrators, successors and assigns, jointly and
severally, firmly by these presents.
WHEREAS the Contractor has entered into a written Agreement with the Employer dated the
day of
, 20
,
for
___________________
in
accordance with the documents, plans, specifications, and amendments thereto, which to the
extent herein provided for, are by reference made part hereof and are hereinafter referred to
as the Contract.
NOW, THEREFORE, the Condition of this Obligation is such that, if the Contractor shall
promptly and faithfully perform the said Contract (including any amendments thereto), then
this obligation shall be null and void; otherwise, it shall remain in full force and effect.
Whenever the Contractor shall be, and declared by the Employer to be, in default under the
Contract, the Employer having performed the Employer’s obligations thereunder, the Surety
may promptly remedy the default, or shall promptly:
(1)
complete the Contract in accordance with its terms and conditions; or
(2)
obtain a Bid or bids from qualified Bidders for submission to the Employer for
completing the Contract in accordance with its terms and conditions, and upon
determination by the Employer and the Surety of the lowest responsive Bidder,
arrange for a Contract between such Bidder and Employer and make available as
work progresses (even though there should be a default or a succession of defaults
under the Contract or Contracts of completion arranged under this paragraph)
sufficient funds to pay the cost of completion less the Balance of the Contract
Price; but not exceeding, including other costs and damages for which the Surety
may be liable hereunder, the amount set forth in the first paragraph hereof. The
term “Balance of the Contract Price,” as used in this paragraph, shall mean the
total amount payable by Employer to Contractor under the Contract, less the
amount properly paid by Employer to Contractor; or
(3)
pay the Employer the amount required by Employer to complete the Contract in
accordance with its terms and conditions up to a total not exceeding the amount of
this Bond.
The Surety shall not be liable for a greater sum than the specified penalty of this Bond.
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