06-Payment Bond.docx

Project: Bridge Rehabilitation 120th St Over Coal Creek Contractor:

Design Professional: RockSol Consulting Group, Inc.

Total Cost:

Term: 60 Working Days Acct. or P.O. #: 34-301-932100 Bond No.

PAYMENT BOND

KNOW ALL PERSONS BY THESE PRESENTS: that [insert name and address of Contractor] as Principal, hereinafter called CONTRACTOR, and [insert name and address of Surety] as Surety, hereinafter called SURETY, are held and firmly bond unto

City of Lafayette 1290 S. Public Road Lafayette, CO 80026 as Obligee, hereinafter called CITY, in the amount of _________________________________ Dollars ($_______________), whereof CONTRACTOR and SURETY bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, to CITY to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, entered into between CONTRACTOR and CITY, dated ____________, 20__, for the following Project:

in accordance with Drawings and Specifications prepared by ___________________________, DESIGN PROFESSIONAL, whose address is: _______________________________________, which contract is by reference made a part hereof, and is hereinafter referred to as the Construction Contract.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that:

1. With respect to CITY this obligation shall be null and void if CONTRACTOR:

1.1 promptly makes payment, directly or indirectly, for all sums due Claimants, and

1.2 defends, indemnifies and holds harmless CITY from claims, demands, liens or suits by any person or entity whose claim, demand, lien or suit is for the payment for labor, materials or equipment furnished for use in the performance of the Construction Contract, provided that CITY has promptly notified CONTRACTOR and SURETY (at the address listed on the first page hereof) 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 CITY Default with respect to such claims, demands, liens or suits, whether or not any Claimant has fully complied with the provisions of the Construction Documents relating to verified claims.

2. With respect to Claimants, this obligation shall be null and void if CONTRACTOR promptly makes payment, directly or indirectly, for all sums due.

3. SURETY shall have no obligation to Claimants under this Bond until:

3.1 Claimants who are employed by or have a direct contract with CONTRACTOR have given notice to SURETY (at the address listed on the first page hereof) and sent a copy, or notice thereof, to CITY, stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the claim.

3.2 Claimants who do not have a direct contract with CONTRACTOR:

3.2.1 have furnished written notice to CONTRACTOR and sent a copy, or notice thereof to CITY, up to and including the date of final settlement under the Construction Contract, stating with substantial accuracy the amount of the claim and the name of the party to whom materials were furnished or supplied or for whom labor was done or performed; and

3.2.2 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 has indicated the claim will be paid directly or indirectly; and

3.2.3 not having been paid within the above 30 days, have sent a written notice to SURETY (at the address listed on the first page hereof) and sent a copy, or notice thereof, to CITY, stating that a claim is being made under this Bond and enclosing a copy of the previous written notice furnished to CONTRACTOR.

4. If a notice required by paragraph 3 is given by CITY to CONTRACTOR or to SURETY, that is sufficient compliance.

5. When a Claimant has satisfied the conditions of paragraph 3, SURETY shall promptly and at SURETY's expense take the following actions:

5.1 send an answer to the Claimant, with a copy to CITY, within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed; and

5.2 pay or arrange for payment of any undisputed amounts.

6. 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.

7. Amount owed by CITY to CONTRACTOR under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims, if any, under the Construction Performance Bond. By CONTRACTOR's furnishing and CITY's accepting this Bond, they agree that all funds earned by CONTRACTOR in the performance of the Construction Contract are dedicated to satisfy obligations of CONTRACTOR and SURETY under this Bond, subject to CITY's priority to use the funds for the completion of the Work.

8. CITY shall not be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligation to make payments to, give notices on behalf of, or otherwise have obligations to Claimants under this Bond.

9. SURETY hereby waives notice of any change, including changes to the Contract Times, to the Construction Contract or to related subcontracts, purchase orders and other obligations.

10. Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the Work or part of the Work is located and shall be instituted within two years after CITY declares CONTRACTOR to be in default or within two years after CONTRACTOR ceased working or within two years after SURETY refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this paragraph are void or prohibited by law, the minimum period of limitation available to Sureties in the State of Colorado shall be applicable.

11. Any notice to the parties required under this Bond shall be in writing, delivered to the person designated below for the parties at the indicated address unless otherwise designated in writing. Only mailing by United States mail or hand-delivery shall be utilized. Facsimile and e-mail addresses are provided for convenience only.

Lafayette:

City of Lafayette 1290 South Public Road Lafayette, Colorado 80026 Attn:

Telephone:

Facsimile:

E-mail:

Contractor:

Attn:

Telephone:

Facsimile:

E-mail:

12. This Bond is to be governed by the laws of the State of Colorado.

13. Upon request by 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.

14. Definitions.

14.1 Claimant: Any person, partnership, or corporation, or other entity that has furnished labor, materials, team hire, sustenance, provisions, provender, or other supplies used or consumed by CONTRACTOR or its Subcontractor in or about the performance of the Work under the Construction Contract, or that supplies laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the Work, or architectural and engineering services required for performance of the Work of the CONTRACTOR and the CONTRACTOR's Subcontractors.

14.2 Construction Contract: The agreement between CITY and CONTRACTOR identified on the first page hereof, including all Contract Documents and changes thereto.

14.3 Default: Failure of the CONTRACTOR or CITY, as the case may be, that has neither been remedied nor waived, to perform or otherwise to comply with the terms of the Construction Contract.

MODIFICATIONS TO THIS BOND ARE AS FOLLOWS:

Signed and sealed this _______ day of ___________, 20__.

[CONTRACTOR] [SURETY]

ATTTEST: ATTEST:

HRO #686999 v1 Payment Bond Form Approved by City Attorney on 1/22/01

HRO #686999 v1 Payment Bond Form Approved by City Attorney on 1/22/01 image1.jpeg