00 61 13.16 - Payment Bond.pdf

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PAYMENT BOND

KNOW ALL PERSONS BY THESE PRESENTS that we, ________________________, as Principal (the "Principal"), and _______________________________________, a corporation organized and existing under the laws of the ________________________ of

_____________________________, as Surety (the "Surety"), are held and firmly bound unto

West Cocalico Township Authority, as Obligee (the "Obligee"), as hereinafter set forth, in the full and just sum of ________________________________ Dollars ($_____________________), lawful money of the United States of America, for the payment of which sum we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

WITNESSETH THAT:

WHEREAS, the Principal heretofore has submitted to Obligee a certain Bid, dated

___________________________, 20____ (the "Proposal"), to perform certain work and supply certain materials (“Project”) for the Obligee in connection with the WCTA Meter Replacement

Project, as specified or indicated in the procurement documents and other related documents constituting the contract documents, which are incorporated into the Proposal by reference (the

"Contract Documents"), as prepared by Herbert, Rowland & Grubic, Inc.; and

WHEREAS, the Obligee is a "contracting body" under the provisions of Act 385 of the

General Assembly of the Commonwealth of Pennsylvania, approved by the Governor on

December 20, 1967, known and cited as the "Public Works Contractors' Bond Law of 1967", as amended ("Act"); and

WHEREAS, the Act, in Section 3.1, requires that, before an award shall be made to the

Principal by the Obligee in accordance with the Proposal, the Principal shall furnish this Bond to the Obligee, with this Bond to become binding upon the award of a contract to the Principal by the

Obligee in accordance with the Proposal; and

WHEREAS, it also is a condition of the Contract Documents that this Bond shall be furnished by the Principal to the Obligee; and

WHEREAS, under the Contract Documents, it is provided, inter alia, that if the Principal shall furnish this Bond to the Obligee, and if the Obligee shall make an award to the Principal in accordance with the Proposal, then the Principal and the Obligee shall enter into an agreement

00 61 13.16-2 011364.0448 with respect to performance of such Work (the "Agreement"), and the form of which Agreement is set forth in the Contract Documents.

NOW, THEREFORE, the terms and conditions of this Bond are and shall be that if the

Principal and any subcontractor of the Principal to whom any portion of the Work under the

Agreement shall be subcontracted, and if all assignees of the Principal and of any such subcontractor, promptly shall pay or shall cause to be paid, in full, all money which may be due any claimant supplying labor or materials in the prosecution and performance of the Work in accordance with the Contract Documents, including any amendment, extension or addition to the

Agreement and/or to the Contract Documents, for material furnished or labor supplied or labor performed, then this Bond shall be void; otherwise, this Bond shall be and shall remain in force and effect.

This Bond, as provided by the Act, shall be solely for the protection of claimants supplying labor or materials to the Principal or to any subcontractor of the Principal in the prosecution of the

Work covered by the Agreement, including any amendment, extension or addition to the

Agreement. The term "claimant", when used herein and as required by the Act, shall mean any individual, firm, partnership, association, or corporation. The phrase "labor or materials", when used herein and as required by the Act, shall include public utility services and reasonable rentals of equipment, but only for periods when the equipment rented is actually used at the site of the

Work covered by the Agreement. As required by the Act, the provisions of this Bond shall be applicable whether or not the material furnished, or labor performed enters into and becomes a component part of the public building, public work or public improvement contemplated by the

Contract Documents and the Agreement.

As provided and required by the Act, the Principal and the Surety agree that any claimant who has performed labor or furnished materials in the prosecution of the Work in accordance with the Agreement and in accordance with the Contract Documents, including any amendment, extension or addition to the Agreement and/or to the Contract Documents, and who has not been paid therefor, in full, before the expiration of ninety (90) days after the day on which such claimant performed the last of such labor or furnished the last of such materials for which payment is claimed, may institute an action upon this Bond, in the name of the claimant, to recover any amount due the claimant for such labor or material, and may prosecute such action to final judgment and may have execution upon the judgment; provided, however, that any claimant who has a direct contractual relationship with any subcontractor of the Principal but has no contractual relationship, express or implied, with the Principal, may institute an action upon this Bond only if such claimant first shall have given written notice, served in the manner provided in the Act, to the Principal within ninety (90) days from the date upon which such claimant performed the last of the labor or furnished the last of the materials for which payment is claimed, stating, with substantial accuracy, the amount claimed and the name of the person for whom the Work was performed or to whom the material was furnished.

This Bond is executed and delivered under and subject to the Act, to which reference hereby is made.

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The Principal and the Surety agree that any alterations, changes and/or additions to the

Contract Documents, and/or alterations, changes and/or additions to the Work to be performed under the Agreement in accordance with the Contract Documents, and/or any alterations, changes and/or additions to the Agreement, and/or any giving by the Obligee of any extensions of time for the performance of the Agreement in accordance with the Contract Documents, and/or any act of forbearance of either the Principal or the Obligee toward the other with respect to the Contract

Documents and the Agreement, and/or the reduction of any percentage to be retained by the

Obligee as permitted by the Contract Documents and by the Agreement, shall not release, in any manner whatsoever, the Principal and the Surety, or either of them, or their executors, administrators, successors and assigns, from liability and obligations under this Bond, and the

Surety, for value received, does waive notice of any such alterations, changes, additions, extensions of time, acts of forbearance and/or reduction of retained percentage.

No final settlement between Obligee and the Principal shall abridge the right of any beneficiary hereunder whose claim may be unsatisfied.

IN WITNESS WHEREOF, intending to be legally bound, the Principal and the Surety have caused this Bond to be signed, sealed and delivered this __________ day of

_____________________________, 20____.

(Individual Principal)

Witnesses:

_____________________________ _________________________________(SEAL)

(Signature of Individual)

Trading and Doing Business As:

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(Partnership Principal) *

Witnesses: _______________________________________

(Name of Partnership)

________________________________ By: ____________________________________

Partner

*All general partners must sign.

(Corporation Principal)

(Name of Corporation)

Attest:________________________ By:____________________________________

(Assistant) Secretary (Vice) President

[CORPORATE SEAL]

(or if appropriate)

Witness:

_______________________________ **By: __________________________________

(Authorized Representative)

**Attach appropriate corporate resolution, dated as of the same date as the Bond, evidencing authority to execute the Bond on behalf of the corporation.

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(Limited Liability Company Principal)***

(Name of Limited Liability Company)

Witnesses:

By: _________________________________

Member

By: __________________________________

By: __________________________________

***All members must sign

(Corporate Surety)

Witness or Attest:

___________________________ ****By: ________________________________

(Title) (Attorney-in-Fact)

[CORPORATE SEAL]

****Attach an appropriate power of attorney, dated as of the same date as the Bond, evidencing the authority of the Attorney-in-Fact to act on behalf of the corporation.