SUBCONTRACT BONDS Sample Clauses
The SUBCONTRACT BONDS clause requires subcontractors to provide surety bonds as a guarantee of their performance and payment obligations under the subcontract. Typically, this means the subcontractor must obtain performance and payment bonds from a licensed surety company, often in amounts equal to the full value of the subcontract. These bonds protect the general contractor and project owner by ensuring that the subcontractor will complete their work as agreed and pay their suppliers and laborers. The core function of this clause is to mitigate the risk of subcontractor default and ensure financial security for all parties involved in the project.
SUBCONTRACT BONDS. 3.27.1 The Subcontract will indicate whether Subcontractor must furnish to the Contractor, as the named Obligee, appropriate surety bonds to secure the faithful performance of the Subcontract Work and to satisfy all Subcontractor payment obligations related to Subcontract Work.
3.27.2 If a performance or payment bond, or both, are required of the Subcontractor under a Subcontract, the bonds shall be in a form and by a surety mutually agreeable to the Contractor and Subcontractor, and in the full amount of the Subcontract Amount (as defined in Article 6), unless otherwise specified.
3.27.3 In the event the Subcontractor shall fail to promptly provide any required bonds, the Contractor may terminate the Subcontract and enter into a subcontract for the balance of the Subcontract Work with another subcontractor. All Contractor costs and expenses incurred by the Contractor as a result of said termination shall be paid by the Subcontractor.
SUBCONTRACT BONDS. Unless expressly excluded, Subcontractor shall supply before the commencement of the work and maintain until completion at Subcontractor’s expense a performance bond and payment bond in a form (attached hereto as Schedules E and F) and written by a surety satisfactory to Contractor in the full amount of the Subcontract Price.
SUBCONTRACT BONDS. 3.27.1 The Subcontractor «conudf_shallshallnot» furnish to the Contractor, as the named Obligee, appropriate surety bonds to secure the faithful performance of the Subcontract Work and to satisfy all Subcontractor payment obligations related to Subcontract Work.
3.27.2 If a performance or payment bond, or both, are required of the Subcontractor under this Agreement, the bonds shall be in a form and by a surety mutually agreeable to the Contractor and Subcontractor, and in the full amount of the Subcontract Amount, unless otherwise specified.
3.27.3 The Subcontractor shall be reimbursed, without retainage, for the cost of any required performance or payment bonds simultaneously with the first progress payment. The reimbursement amount for the subcontractor bonds shall not exceed percent (3%) of the Subcontract Amount, which sum is included in the Subcontract Amount.
3.27.4 In the event the Subcontractor shall fail to promptly provide any required bonds, the Contractor may terminate this Agreement and enter into a subcontract for the balance of the Subcontract Work with another subcontractor. All Contractor costs and expenses incurred by the Contractor as a result of such termination shall be paid by the Subcontractor.
SUBCONTRACT BONDS. 3.28.1 The Subcontractor [Attribute(Contract.BondRequired)] furnish to the Contractor, as the named Obligee, performance, payment, and maintenance bonds on the appropriate ▇▇▇▇▇▇▇▇▇ surety bond forms to secure Subcontractor’s obligations related to Subcontract Work.
3.28.2 All bonds required of the Subcontractor shall be on a ▇▇▇▇▇▇▇▇▇ bond form and by a surety in the Department of the Treasury’s current listing of certified surety companies (T- listed), and in the full amount of the Subcontract Amount, unless otherwise specified.
3.28.3 If Subcontractor seeks reimbursement of the cost of any bonds required under this Agreement, such amount shall be included in the Subcontract Amount and such amount shall not exceed 3% of the Subcontract Amount unless previously approved by Contractor in writing. Subject to the foregoing, the Subcontractor shall be reimbursed, without retainage, for the cost of any required bonds simultaneously with the first progress payment.
3.28.4 In the event the Subcontractor shall fail to promptly provide any required bonds, the Contractor may terminate this Agreement and enter into a subcontract for the balance of the Subcontract Work with another subcontractor. All Contractor costs and expenses, incurred by the Contractor as result of said termination, shall be paid by the Subcontractor and/or Subcontractor’s surety.
3.28.5 All Subcontract bonds must be executed and returned prior to the Subcontractor’s commencement of Work.