Common use of Bonds Provided by Contractor Clause in Contracts

Bonds Provided by Contractor. Contractor will deposit with OMPA a surety bond or bonds, or an irrevocable letter of credit in a form satisfactory to OMPA, in the amount of 100% of the total Contract price prior to the execution of this Contract. Such surety bond or bonds, or letter of credit will be valid until the end of the Base Warranty Period as defined in Article 1.4 of the Contract, and will be a guarantee to OMPA of the following: 5.1.1. That all material liens, subcontractor liens, and/or any other legal encumbrances arising from or related to this Contract are fully paid and satisfied; and 5.1.2. Proper and prompt completion of the Project in accordance with the provisions of the Contract Documents; and 5.1.3. Proper and prompt correction of any defects of workmanship or materials discovered during the warranty period.