Eugene Terminal Expansion Project

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,r .~ t Th~ Contrac~or and the Surety, jo7~tty and severalty. . bind themsetves, their heirs, executors, administrators, successoa and assigns to the Owner tor the pe~fo~mance of the Constructio~ Contract, which is i~corpo~ated he~ein by ~eference. 2 it the Contracto~ pe~forms che Construaion Contract. the Surety .and the Conuacto~ shall have no obligation . under thia 6ond. except to panicipate i~ co~fereoces as provided in Subparag~dph 3.7. . . 3 1( tfiere is no Ow~e~ Oetault: the Su~et~/s obrgation under this 8ond shatl arise atter. 3.i The O~vr~e~ has noti(ied the Cont~ador a~d the Suroty st its address descn'bed.in Paragrdph t0 betow ; that ~he O~.~ne~ is consideri~g decla~ing a Gontracto. Oelautt and has requested snd atterr-pted to a~ra~ge a eonleeence with the Co~tractor and tke Surety to be~ heid not tate~ tE+an fifteen days atte~ ~eceipt ot such ~otice to distuss methoCs ot pertonning the Corsstruc- tion Co~aaa. tt the Owne~. the Co~tracto~ s~d the Su~ety agree, the Cont~aaor sl~ait be ailowed a reason- abte tirt~e to pe~form the Constrvction Contratt, but such a~ ag•eemeni shal! not waive Ihe Owc-e~'s dght, if any, svb~equently to dectare a.Contractor Oe(autt; and 3.2 The O~~er has detla~ed a ConC~acto~ Oetautt and formatly termir~aced the Cont~actor's right !o complete the contract. Such Cor~tractor Oefautt shatl rot be de- dared ea~lier than rveniy days alterthe Contrattor aad the Snrety have ~eceived notice as prov~ded tn Svb- paragroph 3.~: and 3.3 The O+rr+e~ has agreed to pay the 8atance of the Contract Pdce to the Sv~ely in atcorda~ce with ihe ie~ms of the Co~struaion Go~traci or to a conirattor setected io pe~(orn- the Construction Conuact inaccor- dance with the terms o! the cont~act with the Owne~. a When the 4wc~er has utisred the tondicions o! Para- graph 3, the Surecy shali prwnptly and at the SuretY's ex- pe~se take one o~ ihe ~olto.ving aciions: 4.1 Il~range !or the Co~t~actor. with consent of the Owner, to pe~torm ae~d eor+npiete the Construaion Contrad: o~ 4.Z Undenake eo pe~form and complete the Cons~n,c- tion Cont~att itsell, through its age~ts orthrough inde- pende~t toatractors; or ~ <.3 Obtain bids o~ negotiated p~oposals t~om quaQfied cont~aao~s acceptabte to the Ormer for a tontrxt to~ pe~torcaance s~d completwn oi the Con- st~uctio~ Cont~act. arrange for a contratt to be pre- pared (or ezecution by the Owner and the rontracto~ setected N~~h ihe Owner's co~cune~ce, to be secured with pe~fo~mance and payment bonds execvted by a qualifieQ surety equivalent to th~ bonds issued on lhe Const~uction Cont~sct, snd pay to the Owne~ the amount of damages as described i~ Paragraph 6 i~ ex- eeas o! the Balance ol the Contraa Price intu~red by the Owne~ ~esutting (ro~n the Contractors detault; or. 4.4 Waivt its ~ight to pe~(o~m a~d compleie, arrange (or completion, ar obtai~ a ne~v tontratto~ and with reasoaabie promptness unde~ the circumstances: ~. v-fiich i! may be tiable to the O~v~cr and, as - soo~ as practicable a(ter the amount is detc~• mined, tende~ paymeat the~efo~ to thc 0~4~et; or _ • .2 - Oeny fiabtlity, in whofe or i~ pan and ~otity thc Owner citi~+g reato~s there~or. S It the Surety dces ~ot proceed as provided i~ Pa~asraph 4 with reaso~+able promptness. the Svretyshatt be deemed to be in deiavlt on this 8ond lifteen d.1ys after:~eceipt ot an additionat ~vrittea ~olice f~om the Owner to thc, Su~ety demanfiing thac the Surety pe~form its obtigations under this Borid. and the Ow~er shall be eatitled to eniorce any remedy a~~tiable to ihe Owner. lf the Surety proceeds as provided. jn 5ubparagnph 4.4, a~d the Ow~~ sefuses the payment te~de~ed or the Sarety has: denied iiability, i~ wl~ole a~ i~ pan; without fu~ther notice the Owr~er shalf be ~ntJtted to.eato~ce any remedy avaFtabte to the Owne~. 6 A(te~ the Owr+e~ has tem~inated ehe Contractors dght co camplete ihe Co~struction Gont~act. and if-:he Surety etects to act unde~ Subparagraph 4.1. 42, or 43 above. the~ the responsibfltttes of the Su~ecy to the O~vr~e~ shatt ~ot be greate~ thac+ those ~ot the Contractor vnde~ ~he Const~ucfwn Cont~act; and the responsibilities ot the Owne~ to the Sucety shaH not be g~eate~ ihan those ot the Owne~ ur+der the Constructioa Gontract.To the limit of the amount of ihis Bond, but subject to tommttme~t by the Ow~e~ of the 6atance ot the Go~traa Price to anitigation oi costs and damages on the Construction Coatraa, the Su~e- ty is obiigated without dupticatto~ tor. 6.i 7he respor-sibilitles of the Conlracto~ !or cor~ec- tton of defective work and comptetioaaf the Co~st~uc- tion Contract; : 6.2 Addilionat tegal. desig~ p~ofessional aad detay costs resutti° g`(~om the Contracto~'s Defauft, and re- sulting (rom.the acitons o~ tailu~e to act o.f the Surety u~der Paragreph 4; and ~ ~~ 6.S Liqutdated damages, or it.no liquidated damases a~e speciCed in the Coristrvction Cont~act, ac~ual dam- ages pused by delajred- peilormance or non-pe~for- enantto( the Coc-trador. 7 The Surety st+ait noc be Ywb1e eo the Owner or oihea 1or vbitgations o! the Co~tracto~that a~e u~~etated to the Con- stroctioa Contract, and the 6aiance of the Contract Price shali ~ot be reduted or set oft on aocou~t of any suth un~etated obligations. No ~ight ot action shsli sccrue on thts Bond to any persoe+ or ent~ty othe~ than ihe awnee o~ its hein. executon, sdministato~s or suaesson. 8 The Surety he~eby wat~-es notice o( a~y thange, i~clvd• ing changes o[ time, to the Constructioa Co~tnct or to rolated subeontracts, pu~cfzase orde~s aed othe~ obliga- tions. 9 My pcoceeding, tegai o~ equiwbfe, under this Bond may be instituted i~ sny cou~t ot eompetent jurisdi.ction in the loation in which tfie wock o~ pan ot the wo~k is located and. shaTl be i~stituted within tw~o yeaa alter Cont~actor Oelaulc o~ ~vithin two years attet the Contractor ceased working'or withi~ two'years after the Su~ery re(uses or (ails to pe~form its obligatio~s under this Bond. whichever oc• curs firsc. It the provisions ot Ihis Pardgnph arc void o .t Afte~ investigation, dete~mine the amount tor prohibited by law; the minimum period of firnitation avait- Il1A DOCUMENT 1~7L2 - VERfOR~.t/INCE BONO A~'p PAYME1dT B01'O • OECEMBER 198~ t0. ~ I-tA ± THE M1ERIGN IM$tl'ftlTE Of ARCHtTECfS. 17]5 NfW YORK AVf.. N.~V.: WASHINGTOw'. ~.C. 2C006 /~12•lg~ ~ tHIRO PRINTII.G • MARCli t%7 ~