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<br />Performance Bond
<br />
<br />Contractors Bonding
<br />and Insurance Company
<br />1213 Valley Street
<br />P.O. Box 9271
<br />Seattle, WA 98109-0271
<br />For the CBIC b'"'anch
<br />nearest yo II, call Toll "free
<br />(888) 283-2242
<br />(888) 293-2242 FAX
<br />
<br />INSURANCE
<br />
<br />Bond Number: 886384
<br />
<br />Prell1 i u In: _$_3_Q~..:_QQ,.__,_,.._______,__.___________,_,______
<br />
<br />Know All Persons By These Presents, 'That we, Pump Repair Service Company. Inc.
<br />called the Principal, and Contractors Bonding and Insurance Company. a \Xf.1.shington corporation, called the Surety, are held and firmly bound
<br />unto, City of Redwood City
<br />called the Obligee, in the sum of Fifteen Thousand Four Hundred Fortyand---------------------------------------- Dollars ($15,440.00------------
<br />for the payment whereof said Principal and Surety bind themselves firmly by these presents.
<br />
<br />Whereas, the Principal has entered into a contract with the Obligee, dated
<br />Seaport Centre Storm Water Station
<br />
<br />, for
<br />("Contract").
<br />
<br />Now, 'TIlerefon.:, the;: condition of this obligatio:1 is such that if the Prilicip;~J sh~~ll prornpdy and fai::hfully perform the co::stru::tion w,Jrk t(} be
<br />done under the Contract and shall promptly make payment to all Claimants, as hereinafter defined, for all labor and material used, consumed or
<br />incorporated in the performance of the Contract, then this obligation shall be null and void; otherwise to remain in full force and effect.
<br />
<br />\\7henever Principal shall be. and be declared by Obligee to be in default under the Contract for failing to perform the construction work. the
<br />Obligee having performed Obligee's obligations thereunder, Surety shall, within a reasonable time:
<br />
<br />1. Upon entering into an acceptable takeover agreement with the Obligee, undertake to perform and complete the construction work to be
<br />done under the Contract; or
<br />
<br />2. Obtain bids or negotiated proposals from qualified contractors for completion of the construction work to be done under the Contract, and
<br />arrange for a contract to be prepared for execution by the Obligee and the contractor, to be secured with performance and payment bonds
<br />executed by a qualified surety; or
<br />
<br />3. Waive its right to perform and complete, arrange for completion, or obtain a new contractor.
<br />
<br />4. The Contract balance, as defined below, shall be credited against the reasonable cost of completing the construction work to be performed
<br />under the Contract. If completed by the Obligee pursuant to paragraphs 2 or 3 above, and the reasonable cost exceeds the Contract balance,
<br />the Surety shall pay to the Obligee such excess, but in no event shall the aggregate liability of the Surety exceed the amount of this bond.
<br />If the Surety completes the work pursuant to paragraph 1 above. that portion of the Contract balance as may be required to complete the
<br />construction work to be done under the Contract and to reimburse the Surety for its outlays shall be paid to the Surety at the times and in the
<br />manner as said sums would have been payable to Principal had there been no default under the Contract; provided, however, that to the extent
<br />that the Surety's outlays exceed the balance of the Contract price paid to Surety by Obligee. the Surety shall be entitled to a dollar for dollar
<br />reduction of its liability under this bond. and the SureSv's aggn:gatc liability shall not cx;:ced the penal sum of this ball:.:!. 'Ine t!;rm "Contract
<br />balance;' as used in the paragraph, shall mean the total amount payable by Obligee under the Contract and any amendments thereto, less the
<br />amounts heretofore properly paid by Obligee under the Contract. The term "construction work" as used herein shall mean the providing by the
<br />Principal of all labor and/or material necessary to complete the Principal's scope of work under the Contract. Notwithstanding any language
<br />in the Contract to the contrary, the Surety shall not be liable to the Obligee or others for obligations of the Principal that are unrelated to the
<br />ped()fmance of the construction work under the Contract, and the Contract balance shall not be reduced or set offon account of any such
<br />unrelated obligations, nor for any related obligations that would not be covered under this bond.
<br />
<br />5. Any suit by the Obligee under this bond must be instituted before the earlier of: (a) the expiration of one year from rhe date of substantial
<br />completion of the work, or (b) one year after the Principal ceased performing the construction work under the Contract. If this bond is
<br />provided to comply with public works bond statutes in the location where the construction work is being performed, and the public works
<br />bond statutes contain a statute of limitations for suits on the performance bond, then the limitation period set forth herein shall be read out
<br />of this bond and the statute of limitation set forth in the public works bond statutes shall be read into this bond. If the limitation set forth in
<br />this bond is void or prohibited by law, the minimum period oflimitation available to sureties as a defense in the jurisdiction of the suit shall
<br />be applicable.
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