Specifications

Proposal Number PSDF #P09-0004
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENT: That we ____________________________________ as
Principal, also referred to as VENDOR, and _________________________________, as Surety, are
held and firmly bound unto _____________________________________ as Owner, in the full sum of
_____________________________________________________ ($________________________) Dollars,
for the payment of which will and truly to be made, we bind ourselves, our heirs, executors,
administrators, successors and assigns, jointly and severally, by these presents.
WHEREAS, the above bound principal has entered into an Agreement with the Owner dated the
_______________________ day of ________________________________________, 20___________, for
_______________________________________________________________________________________
_______________________________________________________________________________________.
NOW, THEREFORE, the conditions of this obligation are such that if the above bound
Principal shall faithfully and fully comply with the terms and conditions of said Agreement, including,
but not limited to any obligations created by way of warranties and/or guarantees for workmanship
and materials which warranty and/or guarantee may extend for a period of time beyond completion of
said Agreement, and such alterations or additions as may be made therein or in the specifications, and
shall indemnify and save the Owner harmless against all claims for damages by reason of any default
or negligence, want of skill or care on the part of said principal or Agents in and about the
performance of said Agreement, and shall comply with all laws pertaining to the Agreement, and shall
comply with and perform any and all warranties and/or guarantees provided for in said Agreement,
then this obligation shall be void; otherwise of full force and effect.
PROVIDED, further that upon either the default of the Principal, or the failure of the said
Principal to promptly and efficiently prosecute said vehicles, in any respect, in accordance with the
Agreement Documents, the above bound Surety shall either remedy the default of the Principal or
shall take charge of said Agreement, and complete the Agreement at his own expense, pursuant to its
terms, receiving, however, any balance of funds in the hands of said Owner due under said Agreement.
It shall be the duty of the Surety to give an unequivocal notice in writing to the Owner within
ten- (10) days after receipt of a declaration of default of the Surety's election either to remedy the
default or defaults promptly, or to perform the Agreement promptly, time being of the essence. In
said notice of election, the Surety shall indicate the date on which the remedy or performance will
commence, and it shall then by the duty of the Surety to give prompt notice in writing to the Owner
immediately upon completion of (a) the remedy and/or correction of each default, (b) the remedy
and/or correction of each item, (c) the equipment, and (d) the performance of the Agreement. The
Surety shall not assert solvency of its Principal as justification for its failure to give notice of election
or for its failure to promptly remedy the default or defaults or perform the Agreement.
In the event said Principal shall fail or delay the prosecution and completion of said Agreement
and said Surety shall also fail to act promptly as hereinabove provided, then the Owner shall cause
ten- (10) days notice of such failure to be given, both to said Principal and Surety, and at the
expiration of said ten- (10) days, if said Principal or Surety do not proceed promptly to execute said
Agreement, the Owner shall have the authority to cause said work to be done and when the same is
completed and the cost thereof estimated, the said Principal and Surety shall and hereby agree, to pay
any excess in the cost of said Agreement above the agreed price to be paid under said Agreement.
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