C2 WC2608 P and P Contract Bond Form 71-FA-8.2_Dec_2023 UPDATED 10.24.26.pdf

Contract for Construction 71-FA-8.2 Contract Bond Contract No. WC2608 Page 1 of 6

COMMONWEALTH OF PENNSYLVANIA

STATE SYSTEM OF HIGHER EDUCATION

CONTRACT BOND

(Contract Bond must be submitted on this form; all blanks must be completed.)

Bond No.: ____________________________________________________________

University: _____________________________________ University of Pennsylvania

Contract No.: ____________________________________________________________

Project Name: ____________________________________________________________

We the undersigned

(Name of Contractor)

(Address) as Principal, and

(Name of Surety)

(Address) a corporation organized under the laws of ____________________ and authorized to transact business in Pennsylvania, as Surety, are bound unto the Pennsylvania State System of Higher Education (hereafter “PASSHE”) in the penal sums of:

(a) $____________________, equal to _100__% of the Contract amount, for performance of the Contract, including but not limited to design-professional costs and expenses;

(b) $____________________, equal to _100__% of the Contract amount, for the payment for labor, material, equipment rental, and public-utility services used in the prosecution of the Contract; and

(c) $____________________, equal to _10__% of the Contract amount, for maintenance under the Contract;

Contract No. WC2608 Page 2 of 6 lawful money of the United States of America, to be paid to PASSHE and its successors or assigns. The Principal and Surety hereby bind themselves and their heirs, executors, officers, agents, directors, administrators, board members, and successors, jointly and severally, to the payment of the foregoing sums and to the performance of the Contract.

WHEREAS, the Principal has entered or will enter into a Contract with PASSHE as designated above, which contract is hereby referred to and made a part hereof as fully and to the same extent as if set forth at length herein.

WHEREAS, the execution and submission of this Bond is one of the conditions for the award of the project and the execution of the Contract.

NOW, THEREFORE, the joint and several conditions of this obligation are as follows.

1. The joint and several obligations of the Principal and Surety set forth in this Bond are void if the Principal does all of the following; otherwise, the obligations remain in full force and effect:

(a) The Principal faithfully performs under the Contract, including the plans and specifications referred to and made part of the Contract, and including all alterations as may be made to the plans and specifications as provided by the Contract.

(b) The Principal indemnifies and saves harmless PASSHE and all of its officers, agents, directors, board members, and employees from any expense incurred through the failure of the Principal to complete the work as specified and for any damages arising from the performance of the Contract by the Principal or its subcontractors, agents, or servants, including but not limited to patent, trademark, and copyright infringements.

(c) The Principal promptly pays or causes to be paid all sums of money that may be due and owing by the Principal or any of its subcontractors to any person, partnership, association, limited-liability company, or corporation for: (1) any and all material furnished and labor supplied or performed in the prosecution of the work, whether or not that material or labor entered into and became part of the work; (2) the rental of any and all equipment used in, or in connection with, the prosecution of the work; (3) any and all services provided by a design professional related to the project; (4) any and all services rendered by public utilities in, or in connection with, the prosecution of the work.

(d) The Principal remedies without cost to PASSHE any breach of warranty or defects that may develop during a period of one year from the date of final completion and acceptance of all the work performed under the Contract; provided, in the sole discretion of PASSHE, or its successor having jurisdiction over the premises, such defects are caused by defective or inferior materials or workmanship. The maintenance duties and responsibilities incurred by the Principal pursuant to this paragraph do not qualify or limit any right of PASSHE arising pursuant to the performance requirements of this Bond or absolve the Principal of any duty, responsibility, or obligations vested in PASSHE.

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2. Any alterations that may be made in the terms of the Contract or in the work to be done, or materials to be furnished, or labor to be supplied or performed, or equipment to be rented, or public utility services to be rendered, or the giving by PASSHE of any extension of time for the performance of the Contract, or the reduction of the retained percentage as permitted by the Contract, or any other forbearance on the part of either PASSHE or the Principal to the other, will not in any way release the Principal and the Surety or their heirs, executors, officers, agents, directors, administrators, board members, and successors, or assigns from their liability under this Bond. The Surety hereby waives notice of any such alterations, extensions, or forbearances.

3. Every person, partnership, association, limited-liability company, or corporation who, in or in connection with the prosecution of the work, whether as subcontractor or as a person otherwise entitled to the benefits of this Bond: (i) has furnished material or supplied or performed labor; (ii) rented equipment used in the prosecution of the work; (iii) any public utility who has rendered services; or (iv) has provided any design services; and who has not been paid in full, has a direct right of action against the Principal and Surety on this Bond for all sums as may be due, plus reasonable attorneys’ fees; provided, however, that PASSHE shall not be liable to any third party for the payment of any fees, costs, or expenses of such suit under any theory of law or equity.

4. Recovery by any person, partnership, association, limited-liability company, or corporation hereunder is subject to the bonding provisions of the Commonwealth Procurement Code, Title 62, Chapter 9, § 903 of the Pennsylvania Consolidated Statutes, as amended, which is incorporated herein by reference, except that:

(a) Where the Commonwealth Procurement Code refers to the “purchasing agency” or “Commonwealth agency,” it shall be deemed to refer to PASSHE.; and

(b) Where either the Commonwealth Procurement Code or this Bond uses the term “labor,” the term “labor” includes “Design Professional Services,” as defined in 62 Pa.C.S. § 901, provided by design professionals, regardless of whether the design professional who provided such Design Professional Services also superintended or supervised any erection, construction, alteration, or repair in the prosecution of the work.

5. In the event PASSHE declares the Principal in default of the Contract and terminates the Contract, the Surety shall promptly, and at the Surety’s expense, take one of the following actions within 30 days of written notice from PASSHE of the termination of the Contract:

(a) Consult with PASSHE and determine if circumstances exist that PASSHE would permit an arrangement where the Surety could use the Principal to perform and complete the project. PASSHE may reject this option either verbally or in writing for any reason, or by identifying no reason at all. Should PASSHE assent to this option, then such assent must be in writing. Should PASSHE reject this option, then the Surety must select a different option in this paragraph within 30 days unless the Surety and PASSHE agree in writing to a different time period; or

Contract No. WC2608 Page 4 of 6

(b) Perform and complete the Contract itself, through its agents or through independent contractors, provided that such agents or independent contractors must be acceptable to PASSHE and approved by PASSHE in writing; or

(c) Obtain bids or negotiate competitive proposals from qualified contractors who are acceptable to PASSHE and approved by PASSHE in writing for a new contract for the prosecution of the work and completion of the Contract, arrange for that new contract to be prepared for execution by PASSHE and the contractor selected with PASSHE’s written concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Contract, and pay to PASSHE the amount of damages PASSHE incurs resulting from the Principal’s default in excess of the balance of the Contract Price, including the cost for correction of defective work and completion of the Contract, additional legal fees, design-professional fees, and delay costs resulting from the Principal’s default, and liquidated damages, or if no liquidated damages are specified in the Contract, actual damages caused by the delayed performance or non-performance of the Principal; or

(d) Offer a written monetary settlement to PASSHE as an alternative to completing the Contract. PASSHE has sole discretion to refuse all monetary settlements offers without stating any reason. If PASSHE rejects the monetary settlement offer, then the Surety must undertake one of the other options in this paragraph within 30 days unless the Surety and PASSHE agree in writing to a different time period.

6. If PASSHE declares the Principal in default of the Contract and terminates the Contract, and the Surety does not proceed as provided in Section 5 within 30 days of the termination of the Contract, the Surety will be in default on this Bond, and PASSHE will be entitled to enforce any remedy available to it.

7. If the Surety elects to proceed under Section 5(b) and complete the project through its agents or through independent contractors, the Surety will provide in writing to PASSHE a list of all agents or independent contractors that the Surety proposes to use to complete the project.

The Surety may not proceed to complete the project until PASSHE has given its approval, in writing, of the use of the proposed agents or independent contractors. If PASSHE provides written notice that any of the proposed agents or independent contractors are not acceptable, then the Surety must either procure the services of alternate agents or independent contractors that are acceptable to PASSHE, or select one of the other options in Paragraph 5 above.

8. Nothing in this Bond limits any right or ability of PASSHE to declare the Principal in default of the Contract or to terminate the Contract according its terms.

9. In the event of noncompliance with this Bond, the Surety is liable to PASSHE for the court costs and reasonable attorneys’ fees spent in the collection of this Bond over and above the penal sum of this obligation, including but not limited to reasonable attorneys’ fees and costs incurred.

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10. All rights and obligations hereunder, including matters of construction, validity and performance, are governed by the law of the Commonwealth of Pennsylvania without regard to conflict-of-law principles. Venue for disputes regarding this Bond lies solely with the Pennsylvania Board of Claims or the Pennsylvania Commonwealth Court.

11. Notice to the Surety or Principal may be mailed or delivered to the address shown on the first page of this Bond.

Executed this ____________________ day of ____________________, 20_____.

If the Bidder is an Individual, Proprietorship, or Partnership:

(one signature and one witness signature required)

(Bidder Signature)

(Print Name)

(Witness Signature)

(Print Name)

If the Bidder is a Corporation, LP, LLP, or LLC:

(two signatures required)

(Signature)

(Print Name)

(Title)

(Signature)

(Print Name)

Surety:

(Signature)

(Print Name)

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The names of the Principal and the Surety on the front page must include a street address.

The Surety must attach to the Bond a Power-of-Attorney, which must be dated to match the date of the Bond, and showing that at the person signing the Bond for the Surety has current authority to do so.