Performance Bond
This Performance Bond (Bond), made the 13th day of September 2020, by and between ABC, Inc., hereinafter called the PRINCIPAL, and XYZ Surety Company, hereinafter called the SURETY.
WITNESSETH:
WHEREAS, the Owner, ABC, Inc., hereinafter referred to as the Owner and/or Developer, has entered into Agreement No. 007 (hereinafter referred to as the Agreement) dated the 13th day of September 2020 with Contrator (hereinafter referred to as Contractor) for Project Number 1234 (hereinafter referred to as the Project), and
WHEREAS, the Owner is requiring the Contractor to furnish a Performance Bond for the faithful performance of said Agreement;
NOW, THEREFORE, the Surety hereby agrees to pay to the Owner, the sum of Five Hundred Thousand Dollars ($500,000.00) aggregately, or, if the Owner shall so elect, in several sums, as the obligor of the PRINCIPAL may from time to time hereafter become payable, as provided in the conditions of this Bond. This Bond is conditioned that if the PRINCIPAL shall well, truly, and faithfully perform, in accordance with the terms of the Agreement, every covenant and agreement, and all the works, terms, and obligations specified in the Agreement, then this Bond shall be void; otherwise it shall remain in full force and effect.
The SURETY hereby binds itself, its heirs, executors, administrators, successors and assigns, to the Owner and its successors and assigns, firmly by these presents.
CONDITIONS
1. It is a condition of this Bond that the Owner leaves free access to the work to be done for the purpose of affording to PRINCIPAL opportunity for inspection and observation and that the Government of the District of Columbia, if any, will provide such means for access and inspection as may be necessary.
2. The Surety shall not be responsible for cost overruns, penalties, or other debts or obligations incurred by the Contractor, unless the Surety gives its express written consent thereto.
3. The Surety agrees to pay to the Owner for any damages the Contractor fails to perform under the terms of the Agreement, and the Surety agrees to secure and pay any damages suffered by the Owner as a result of Contractor’s default.
4. The Bond shall be discharged by the Paying Authority upon the completion of the performance of all duties and obligations of the Contractor and in the event the Contractor fails or refuses to perform or complete said duties or obligations in accordance with the terms of the Agreement.
5. The payment of this bond according to its terms shall constitute a full and final discharge of the obligations of the Surety.
6. This bond shall inure to the benefit of the Owner and its successors and assigns.
IN WITNESS WHEREOF, the undersigned, on behalf of the PRINCIPAL and SURETY, have caused their duly authorized representatives to sign and execute this performance bond.
IN WITNESS the SURETY has caused this instrument to be signed in its name and behalf on this day of September 2020.
ABC, Inc.
_____________
Signature
XYZ Surety Company
_____________
Signature
The Bond is valid until the completion of the project. In the event of any dispute, the Contractor, the Surety and the Owner shall have the right to proceed to legal action in the courts for their respective rights.
It is further agreed that any provisions hereof that either conflict with or are inconsistent with the law of the state wherein this contract is executed or any other applicable law of the United States of America shall not be binding upon any of the parties hereto, and such provisions shall be for the purpose only of accommodating state law.
IN WITNESS WHEREOF, the undersigned, on behalf of ABC, Inc. and XYZ Surety Company, have caused their duly authorized representatives to sign and execute this Bond.
