6-Attachment F-3 WARRANTY BOND.docx

WARRANTY BOND

Contractor

Surety

Name:

Name:

Address (principal place of business):

Address (principal place of business):

Owner

Construction Contract

Name:

Description (name and location):

Address (principal place of business):

Contract Price:

Effective Date of Contract:

Contract’s Date of Substantial Completion:

Bond

Bond Amount:

Bond Period: Commencing 364 days after Substantial Completion of the Work under the Construction Contract, and continuing until two years after such Substantial Completion.

Date of Bond:

Modifications to this Bond form:

☒ None ☐ See Paragraph 9

Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth herein, do each cause this Warranty Bond to be duly executed by an authorized officer, agent, or representative.

Contractor as Principal

Surety

(Full formal name of Contractor)

(Full formal name of Surety) (corporate seal)

By:

By:

(Signature)

(Signature) (Attach Power of Attorney)

Name:

Name:

(Printed or typed)

(Printed or typed)

Title:

Title:

Attest:

Attest:

(Signature)

(Signature)

Name:

Name:

(Printed or typed)

(Printed or typed)

Title:

Title:

Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to Contractor, Surety, Owner, or other party is considered plural where applicable.

1. The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to the Owner for the performance of the Construction Contract’s Correction Period Obligations. The Construction Contract is incorporated herein by reference.

2. If the Contractor performs the Correction Period Obligations, the Surety and the Contractor shall have no obligation under this Warranty Bond.

3. If Owner gives written notice to Contractor and Surety during the Bond Period of Contractor’s obligation under the Correction Period Obligations, and Contractor does not fulfill such obligation, then Surety shall be responsible for fulfillment of such Correction Period Obligations. Surety shall either fulfill the Correction Period Obligations itself, through its agents or contractors, or, in the alternative, Surety may waive the right to fulfill the Correction Period Obligations itself, and reimburse the Owner for all resulting costs incurred by Owner in performing Contractor’s Correction Period Obligations, including but not limited to correction, removal, replacement, and repair costs.

4. The Surety’s liability is limited to the amount of this Warranty Bond. Renewal or continuation of the Warranty Bond will not modify such amount, unless expressly agreed to by Surety in writing.

5. The Surety shall have no liability under this Warranty Bond for obligations of the Contractor that are unrelated to the Construction Contract. No right of action will accrue on this Warranty Bond to any person or entity other than the Owner or its heirs, executors, administrators, successors, and assigns.

6. Any proceeding, legal or equitable, under this Warranty 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 must be instituted within two years after the Surety refuses or fails to perform its obligations under this Warranty Bond.

7. Written notice to the Surety, the Owner, or the Contractor must be mailed or delivered to the address shown in this Warranty Bond.

8. It is the intention of the Contractor, Surety and the City of Detroit (City) that the Surety shall be bound by all terms and conditions of the Contract Documents and this Performance Bond. However, this Performance Bond is executed pursuant to Public Act No. 213 of 1963 as amended by Public Act No. 351 of 1972 and Public Act No. 11 of 1982, and if any provision(s) of this Bond is/are illegal, invalid or unenforceable, all other provisions of this Performance Bond shall nevertheless remain in full force and effect, and the City shall be protected to the full extent provided by with Public Act No. 213 of 1963 as amended by Public Act No. 351 of 1972 and Public Act No. 11 of 1982.

9. The Surety shall be licensed by the State Insurance Bureau be acceptable to the City of Detroit (City) and, unless otherwise authorized by the City, have at least A+ Best’s rating and a XV or better financial size category per current A. M. Best Company ratings.

Standard General Conditions of the Construction Contract (2018), Paragraph 15.08, as duly modified.

9.1. Substantial Completion—As defined in the Construction Contract.

9.2. Work—As defined in the Construction Contract.

10. Modifications to this Bond are as follows: None