1-09 EXHIBIT E - Security Bond.docx

This is a Security Bond exhibit for a Construction Manager-at-Risk project at the University of Texas at Austin involving the Disch-Falk Field and J. Dan Brown Player Performance Center Renovation. The bond serves as a surety instrument binding the Principal (contractor) and Surety to The Board of Regents of The University of Texas System as Obligee. The security bond is required to be in the amount of five percent (5%) of the Guaranteed Maximum Price (GMP), which is calculated based on the Construction Cost Limitation of $9,400,000.00, resulting in a security bond requirement of $470,000.00. The Principal is obligated to execute a GMP Proposal acceptable to all parties and provide Performance and Payment Bonds as required by the Contract within the timeframe specified in the Contract documents. The bond protects the Obligee by ensuring that if the Principal fails to execute the required bonds and complete the contract obligations, the Surety will pay the difference between the Principal's GMP Proposal and any higher cost incurred by the Obligee to contract with another party to perform the work, not to exceed the penal sum.

The Security Bond represents a financial commitment mechanism under Texas law, executed in the State of Texas with proper corporate seals and signatures from authorized representatives of both the Principal and Surety. This bond structure ensures contractor performance and financial responsibility throughout the project delivery process. The bond conditions are void upon successful execution of the GMP Proposal and the requisite Performance and Payment Bonds, establishing a clear threshold for contractor accountability. No renewal options or set-asides are applicable to this bond instrument, as it functions solely as a preliminary financial guarantee mechanism for the selection and contracting phase of the construction management project.