HomeMy WebLinkAbout402 -Payment Bond (2) PAYMENT BOND
Any singular reference to Contractor, Surety,Owner,or other party shall be considered plural where applicable.
CONTRACTOR(Name and Address): SURETY(Name, and Address of Principal Place of
Business):
OWNER(Name and Address):
CONTRACT
Effective Date of Agreement:
Amount:
Description(Name and Location):
BOND
Bond Number:
Date (Not earlier than Effective Date of
Agreement):
Amount:
Modifications to this Bond Form:
Surety and Contractor,intending to be legally bound hereby, subject to the terms set forth below, do each
cause this Payment Bond to be duly executed by an authorized officer, agent,or representative.
CONTRACTOR AS PRINCIPAL SURETY
(Seal) (Seal)
Contractor's Name and Corporate Seal Surety's Name and Corporate Seal
By: By:
Signature Signature (Attach Power of Attorney)
Print Name Print Name
Title Title
Attest: Attest:
Signature Signature
Title Title
Note: Provide execution by additional parties, such as joint venturers, if necessary.
EJCDC C-615 Payment Bond
Prepared by the Engineers Joint Contract Documents Committee.
Page 1 of 3
1. Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators,
successors, and assigns to Owner to pay for labor, materials, and equipment furnished by Claimants for use
in the performance of the Contract, which is incorporated herein by reference.
2. With respect to Owner, this obligation shall be null and void if Contractor:
2.1 Promptly makes payment,directly or indirectly, for all sums due Claimants, and
2.2 Defends, indemnifies, and holds harmless Owner from all claims, demands, liens, or suits alleging
non-payment by Contractor by any person or entity who furnished labor, materials, or equipment
for use in the performance of the Contract, provided Owner has promptly notified Contractor and
Surety (at the addresses described in Paragraph 12) of any claims, demands, liens, or suits and
tendered defense of such claims, demands, liens, or suits to Contractor and Surety, and provided
there is no Owner Default.
3. With respect to Claimants, this obligation shall be null and void if Contractor promptly makes payment,
directly or indirectly, for all sums due.
4. Surety shall have no obligation to Claimants under this Bond until:
4.1 Claimants who are employed by or have a direct contract with Contractor have given notice to
Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to Owner,
stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the
claim.
4.2 Claimants who do not have a direct contract with Contractor:
1. Have furnished written notice to Contractor and sent a copy, or notice thereof, to Owner, within
90 days after having last performed labor or last furnished materials or equipment included in the
claim stating, with substantial accuracy, the amount of the claim and the name of the party to
whom the materials or equipment were furnished or supplied, or for whom the labor was done or
performed; and
2. Have either received a rejection in whole or in part from Contractor, or not received within 30
days of furnishing the above notice any communication from Contractor by which Contractor had
indicated the claim will be paid directly or indirectly; and
3. Not having been paid within the above 30 days, have sent a written notice to Surety (at the
address described in Paragraph 12) and sent a copy, or notice thereof, to Owner, stating that a
claim is being made under this Bond and enclosing a copy of the previous written notice
furnished to Contractor.
5. If a notice by a Claimant required by Paragraph 4 is provided by Owner to Contractor or to Surety,that is
sufficient compliance.
6. When a Claimant has satisfied the conditions of Paragraph 4, the Surety shall promptly and at Surety's
expense take the following actions:
6.1 Send an answer to that Claimant, with a copy to Owner, within 45 days after receipt of the claim,
stating the amounts that are undisputed and the basis for challenging any amounts that are disputed.
6.2 Pay or arrange for payment of any undisputed amounts.
7. Surety's total obligation shall not exceed the amount of this Bond, and the amount of this Bond shall be
credited for any payments made in good faith by Surety.
8. Amounts owed by Owner to Contractor under the Contract shall be used for the performance of the
Contract and to satisfy claims, if any, under any performance bond. By Contractor furnishing and Owner
accepting this Bond, they agree that all funds earned by Contractor in the performance of the Contract are
dedicated to satisfy obligations of Contractor and Surety under this Bond, subject to Owner's priority to use
the funds for the completion of the Work.
EJCDC C-615 Payment Bond
Prepared by the Engineers Joint Contract Documents Committee.
Page 2 of 3
9. Surety shall not be liable to Owner, Claimants, or others for obligations of Contractor that are unrelated
to the Contract. Owner shall not be liable for payment of any costs or expenses of any Claimant under this
Bond, and shall have under this Bond no obligations to make payments to, give notices on behalf of, or
otherwise have obligations to Claimants under this Bond.
10. Surety hereby waives notice of any change, including changes of time, to the Contract or to related
subcontracts,purchase orders, and other obligations.
11. No suit or action shall be commenced by a Claimant under this Bond other than in a court of competent
jurisdiction in the location in which the Work or part of the Work is located or after the expiration of one
year from the date (1) on which the Claimant gave the notice required by Paragraph 4.1 or Paragraph 4.2.3,
or (2) on which the last labor or service was performed by anyone or the last materials or equipment were
furnished by anyone under the Contract, whichever of (1) or (2) first occurs. If the provisions of this
paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense
in the jurisdiction of the suit shall be applicable.
12. Notice to Surety, Owner, or Contractor shall be mailed or delivered to the addresses shown on the
signature page. Actual receipt of notice by Surety, Owner, or Contractor, however accomplished, shall be
sufficient compliance as of the date received at the address shown on the signature page.
13. When this Bond has been furnished to comply with a statutory requirement in the location where the
Contract was to be performed, any provision in this Bond conflicting with said statutory requirement shall be
deemed deleted herefrom and provisions conforming to such statutory requirement shall be deemed
incorporated herein. The intent is that this Bond shall be construed as a statutory Bond and not as a common
law bond.
14. Upon request of any person or entity appearing to be a potential beneficiary of this Bond, Contractor
shall promptly furnish a copy of this Bond or shall permit a copy to be made.
15. Definitions
15.1 Claimant: An individual or entity having a direct contract with Contractor, or with a first-tier
subcontractor of Contractor, to furnish labor, materials, or equipment for use in the performance of
the Contract. The intent of this Bond shall be to include without limitation in the terms "labor,
materials or equipment" that part of water, gas, power, light, heat, oil, gasoline, telephone service,
or rental equipment used in the Contract, architectural and engineering services required for
performance of the Work of Contractor and Contractor's subcontractors, and all other items for
which a mechanic's lien may be asserted in the jurisdiction where the labor, materials, or
equipment were furnished.
15.2 Contract: The agreement between Owner and Contractor identified on the signature page,
including all Contract Documents and changes thereto.
15.3 Owner Default: Failure of Owner, which has neither been remedied nor waived, to pay Contractor
as required by the Contract, or to perform and complete or otherwise comply with the other terms
thereof.
FOR INFORMATION ONLY—(Name,Address, and Telephone)
Surety Agency or Broker:
Owner's Representative(Engineer or other):
EJCDC C-615 Payment Bond
Prepared by the Engineers Joint Contract Documents Committee.
Page 3 of 3