Common use of Performance and Payment Bonds Clause in Contracts

Performance and Payment Bonds. 7.1 The Owner requires performance and payment bonds from the Contractor in the amount of the Contract; the cost of the bonds to be paid by the Contractor. 7.2 Owner reserves the right to approve the surety company writing the bonds. 7.3 No payment will be due or made under this Contract until the required bonds are received and approved by the Owner. If the Contractor cannot furnish the required bonds in a form and amount acceptable to the Owner, the Contractor agrees that the Owner may anytime, at its option, declare this Contract null and void. 7.4 No change, alteration, modification or addition in the terms, covenants or conditions of this Contract shall in any way exonerate in whole or in part, any surety on any bond furnished by or on behalf of the Owner. 7.5 The above referenced 100% performance and payment bonds in form and with surety acceptable to Owner are a condition precedent to this Contract.