Common use of Warranty Bond Requirements Clause in Contracts

Warranty Bond Requirements. Upon commencement of the Contractor’s warranty obligations under Article XVIII, above, Contractor shall deliver to Owner the Warranty Bond (Exhibit 2.3) in favor of Owner in an amount equal to 5% of the Contract Sum, as adjusted in accordance with this Agreement, securing the performance of Contractor’s warranty obligations under this Agreement, which Warranty Bond(s) shall remain in effect until the expiration of Contractor’s warranty obligations hereunder, not to exceed one (1) year from the scheduled date of Substantial Completion or until Owner elects in writing to release such Warranty Bond, whichever occurs first.