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<br /> BOND TERMS AND CONDITIONS <br />1. Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, <br /> administrators, successors and assigns to City for the complete and proper performance <br /> of the Construction Contract, which is incorporated herein by reference. <br />2. If Contractor completely and properiy perfonns all of its obligations under the <br /> Construction Contract, Surety and Contractor shall have no obligation under this Bond. <br />3. If there is no City Default, Surety's obligation under this Bond shall arise after: <br /> 3.1 City has declared a Contractor Default under the Construction Contract pursuant to <br /> the terms of the Construction Contract; and <br /> 3.2 City has agreed to pay the Balance of the Contract Sum: <br /> 3.2.1 To Surety in accordance with the terms of this Bond and the Construction <br /> Contract; or <br /> 3.2.2 To a contractor selected to perform the Construction Contract in <br /> accordance with the terms of this Bond and the Construction Contract. <br />4. When City has satisfied the conditions of Paragraph 3, Surety shall promptly (within 30 <br /> Days) and at Surety's expense elect to take one of the following actions: <br /> 4.1 Arrange for Contractor, with consent of City, to perform and complete the <br /> Construction Contract (but City may withhold consent, in which case the Surety <br /> must elect an option described in Paragraphs 4.2, 4.3 or 4.4, below); or <br /> 4.2 Undertake to perform and complete the Construction Contract itself. through its <br /> agents or through independent contractors; provided, that Surety may not select <br /> Contractor as its agent or independent contractor without City's consent; or <br /> 4.3 Undertake to perfolll'l and complete the Construction Contract by obtaining bids <br /> from qualified contractors acceptable to City for a contract for perfolll'lance and <br /> completion of the Construction Contract and, upon determination by City of the <br /> lowest responsive and responsible Bidder, arrange for a contract to be prepared <br /> for execution by City and the contractor selected with City's concurrence, to be <br /> secured with performance and payment bonds executed by a qualified surety <br /> equivalent to the bonds issued on the Construction Contract; and, if Surety's <br /> obligations defined in Paragraph 6, below. exceed the Balance of the Contract <br /> Sum, then Surety shall pay to City the amount of s~ ,xcess; or <br /> 4.4 Waive its right to perform and complete, arrange for completion, or obtain a new <br /> contractor and with reasonable promptness under the circumstances and, after <br /> investigation and consultation with City. determine in good faith its monetary <br /> obligation to City under Paragraph 6, below, for the performance and completion of <br /> the Construction Contract and, as soon as practicable after the amount is <br /> determined, tender payment therefor to City with full explanation of the paymenfs <br /> calculation. If City accepts SuretYs tender under this Paragraph 4.4, City may still <br /> hold Surety liable for future damages then unknown or unliquidated resulting from <br />1880-001\2133238.2 00610-2 <br />CONSTRUCTION PERFORMANCE BOND <br /> ---"'~ ,-.^---~--..~' <br />