PERFORMANCE BOND
This Performance Bond (Undertaking) is made and entered into as of the date indicated below (the Effective Date) by and among [Parties] (the Obligor) jointly and severally and [Institution] (the Surety).
W I T N E S S E T H
WHEREAS, the Obligor has been invited to submit its proposal for the [Project], to [Project Owner] (the Owner). The Proposal is dated [date] (the Proposal), and sets forth the scope of the work, the materials and services to be provided, the schedule of performance and the price, among other provisions.
WHEREAS, a bond is required by the Owner in order to evidence the Obligors commitment to enter into, and to perform the Proposal in full compliance with all of the terms, conditions and specifications set forth therein;
NOW THEREFORE, in consideration of the Obligor being allowed by the Owner to submit the Proposal and of the Owner being willing to consider same, and of other good and valuable consideration, receipt of which is hereby acknowledged, the Obligor and the Surety hereby jointly and severally undertake and agree with the Owner that, if the Proposal is accepted and a contract is entered into between the Obligor and the Owner, the Obligor will fulfill all of the terms, conditions and specifications of the Proposal and the contract;
NOW THEREFORE, for the full and faithful performance thus undertaken, the Obligor does hereby obligate itself and bind itself, jointly and severally, to repay to the Owner and to the Surety all costs, losses, charges and damages sustained by them on account of any breach or default of the terms and conditions of the Proposal and/or the contract.
IN WITNESS WHEREOF, the Obligor and the Surety have executed this Undertaking as of the Effective Date.
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[Obligor]
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[Institution]
