Sample_Payment_Bond.pdf

LABOR AND MATERIAL PAYMENT BOND

KNOW ALL MEN BY THESE PRESENTS, that (here insert full name and address or legal title of Contractor) as Principal, herinafter called Principal, and (here insert full name and address or legal title of Surety

As Surety, hereinafter called Surety, are held and firmly bound unto (here insert full name and address or legal title of Owner)

As Obligee, hereinafter called Owner, for the use and benefit of claimants as hereinbelow defined, in the amount of Dollars $___________________________

For the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS,

Principal has by written agreement dated 20 , entered into a contract with Owner for (here insert full name, address and description of project)

In accordance with Drawings and Specifications prepared by

(here insert full name and address or legal title of Engineer/Architect) which contract is by reference made a part hereof, and is hereinafter referred to as the Contract.

LABOR AND MATERIAL PAYMENT BOND

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and material used or reasonably required for use in the performance of the Contract, then this obligation shall be void; otherwise it shall remain in full force and effect, subject, however, to the following conditions:

1. A claimant is defined as one having a direct con- accuracy the amount claimed and the name of the party tract with the Principal or with a Subcontractor of the to whom the materials were furnished, or for whom Principal for labor, material, or both, used or reasonably the work or labor was done or performed. Such notice required for use in the performance of the Contract, shall be served by mailing the same by registered mail labor and material being construed to include that part of or certified mail, postage prepaid, in an envelop ad-water, gas, power, light, heat, oil, gasoline, telephone dressed to the Principal Owner or Surety, at any place service or rental of equipment directly applicable to the where an office is regularly maintained for the trans- Contract. action of business, or served in any manner in which legal process may be served in the state in which the

2. The above named Principal and Surety hereby aforesaid project is located, save that such service need jointly and severally agree with the Owner that every not be made by a public officer.

claimant as herein defined, who has not been paid in full before the expiration of a period of ninety (90) b) After the expiration of one (1) year following the days after the date on which the last of such claimant’s date on which Principal ceased Work on said Contract, work or labor was done or performed or materials were it being understood, however, that if any limitation em-furnished by such claimant, may sue on this bond for bodied in this bond is prohibited by any law controlling the use of such claimant, prosecute the suit to final the construction hereof such limitation shall be deemed judgment for such sum or sums as may be justly due to be amended so as to be equal to the minimum period claimant, and have execution thereon. The Owner shall of limitation permitted by such law.

not be liable for the payment of any costs or expenses of any such suit. c) Other than in a state court of competent jurisdiction in and for the county or other political subdivision of

3. No suit or action shall be commenced hereunder the state in which the Project or any part thereof, is by any claimant: situated, or in the United States District Court for the district in which the Project, or any part thereof is sit-

a) Unless claimant, other than one having a direct uated, and not elsewhere.

contact with the Principal, shall have given written notice to any two of the following: the Principal, the 4. The amount of this bond shall be reduced by and Owner, or the Surety above named, within ninety (90) to the extent of any payment or payments made in good days after such claimant did or performed the last of faith hereunder, inclusive of the payment by Surety of the work or labor, or furnished the last of the materials mechanics’ liens which may be filed of record against for which said claim is made, stating with substantial said improvement, whether or not claim for the amount of such lien be presented under and against this bond.

Signed and sealed this day of 20

(Principal) (Witness) (Title)

(Surety) (Witness) (Title)