IE General Engineering, Inc. Faithful Performance Bond CIP19-03 SU1172595THE AMERICAN INSTITUTE OF ARCHITECTS
Premium Amount Based
on Final Contract Amount
Bond No. SU 1172595
Performance Bond
Ai, e9ula E .M6 to cqn6<ror. suiry. cr*s d .rl'r p.rt rhrt b. mk .r.d ,'rrd llBD .poldbL
CONTRACTOR (Name and Address):
IE GENERAL ENGINEERING, INC.
'1440 Beaumont Ave., Suite A2-130
Beaumont, CA 92223
SURETY lttame anO erincipal Place of Business)
Arch lnsurance Company
300 Plaza Thrc€
Jersey City, NJ 07311
OVVNER (Name and Address)
City ot Menifee
29844 Haun Road
Menifee, CA 92586
CONSTRUCTION CONTRACT
Date:
Amount: Five Hundred Seven Thouaand One Hundred Fifteon and NOr100 Oollars ($507,1i5.00)
Description (Name and Location):
CIP No. 1943 - Antelope Road Raised Satuty Modian lmprovsmentg
BOND
Date (Not eadier than Construclion Contract Date):
Amount: Five Hundred Soven Thousand One Hundrod Fifteon and NOr100 Dollars (i507,115.00)
Modifcations to this Bond: [X] None Ll See Page 3
CONTRACTOR AS PRINCIPAL
COMPANY:
IU CtNER,{
(Corporate Seal)
NEERINC. IN-C.
Signature
(Corporate Seal)
Arch Insurance ompanl
Signature:
Name and
Mark D. Leskanic , Attomey-in-Fact
Name,f nd
Ulo A,rlt O t'?)z e
(Any additional signatures appear on page 3)
FOR INFORMATION ONLY-Name, Address and Telephone
AGENT OR BROKER:
SURETY BONO PROFESSIONALS, INC.
205 Union SL, 2nd Floo.
Nalick, t{A 01760
O\ iNER'S REPRESENTATIVE (Architect,
or Engineer or other party):
AIA oocu EnTASl2 PERFoRMANCE BoNo ATD PAYTIENT BoNo DECEMaER 19a4 Eo.,AIA T]
THE AI|ERICAN INSITUTE OF ARCIIITECIS, I735 NEI{ YORKAVE-, X,W., WASIII{GION O,C,2O006
IHIROPBNN{G - IAFCH 1987
AIA Document A3'12
SURETY
COMPANY:
A 312-t984 1
1. The Contractor and the Surety, jointly and severally,
bind themselves, their heirs, executors, administrators.
successors, and assigns to the Owner for the psrformance
of the Construction Contracl, which is ancorporated herein
by reference.
2. lf the Contractor performs the Construction Contract,
the Surety and the Cont.actor shall have no obligation
under this Bond, except to participate in conferences as
p.ovided in Subparagraph 3.1.
3. lf there is no Orner Default. the Surety's obligation
under this Bond shall arise after:
3,1 The Owner has notified the Contraclo. and the
Surety at its address descnbed in Paragraph l0 below
that the Owner is considsring declaring a Contractor
Default and has requested and attempted to arrange a
conference with the Contractor and the Su.ety to be
held not later than fifteen days afler receipt of such
notice to discuss methods of performing lhe Construc-
tion Contracl. lf the Owner, the Contractor and the
Surety agree. the Conkactor shall be allowed a reason-
able time to perform the Construction Contract, but
such an agreement shall not waive the Owner's right, if
any, subsequently to declare a Contraclor Default: and
3.2 The Owner has declared a Contractor Default and
formally terminated the Contracto/s right to complete
the contract. Such Conkactor Delault shall not be de-
clared earlier than twenty days after the Contractor and
the Surety have received nolice as provided in Sub-
paragraph 3.1 and
3.3 The Owner has agreed to pay the Balance ofthe
Contract Price to the Surety in accordanc€ with the
terms of the Construction Contracl or to a contractor
selecled to perform the Construction Contract in accor-
dance with the terms of the contract with the Owner.
4. When the Owner has satislied the conditions of Para-
graph 3, the Surety shall promptly and at the Surety's ex-
pense take one of the following actions:
4.1 Ar.ange for the Contractor, with consent of the
Owner, lo perform and complete the Construction
Contract: or
4.2 undertake to perform and complete the Construc-
tion Contract itself, through its agents or through inde-
pendent conkactors; or
4.3 Obtain bids or negotiated proposals lrom
qualifled contractors acceptable to the Owner for a
contract for performance and completion of the Con-
struction Contract, arrange for a contract to be pre-
pared for execution by the Owner and the contraclor
selected with the Owneis concurrence. to be secured
with performance and payment bonds executed by a
qualified surety equivalenl to the bonds issued on the
Construction Contract, and pay to the O,vner the
amount of damages as described ln Paragraph 6 in ex-
cess of the Balance of the Contract Price incurred by the
Owner resulting from the Contractods defaulti or
il,4 Waive its rights to perform and complete, anange
for completion, or obtain a new contractor and with reasonable
promptness under the circumstances:
reasonable promptness under the circumstances:.l After investigation, determine the amount forwhich it may
be liable to the Owner and, as soon as praclicable efter the
amount is determined, tender payment therefor to the
Owner: or
.2 Oeny liability in whole or in part and notily the Owner
citing reasons therefor.
5. lf the Surety does not proceed as provided in Paragraph
4 with reasonable promptness, the Surety shall be deemed
to be in default on this Bond fifteen days after receipt of an
additional written notice from the Owner to the Surety
demanding that the Surety perform its obligations under
this Bond, and the Owner shall be entitled to enforce any
remedy available to the Owner. lf the Surety proceeds as
provided in Subparagraph 4.4, and the Owner refuses the
payment tendered or the Surety has denied liability, in
whole or in part, without further notice the Owner shall be
entitled to enforce any remedy available to the Owner.
6. After the Otr/ner has terminated the Contracto/s nght
to complete the Construction Contract, and if the Surety
elecls to ac,t under Subparagraph 4.1, 4.2, or 4.3 above,
then the responsibilities ofthe Surety to the Owner shall
not be greater than those of the Contractor under the
Construction Contracl, and the responsibilitaes of the
Owner to the Surety shall not be greater than those of the
Owner under the Construction Contracl. To the limit of the
amount of this Bond, but subJect to commitrnent by the
Owner of the Balance of the Contract Price to mitigation of
costs and damages on the Construction Contract. the Sure-
ty is obligated without duplication for:
6.1 The responsibilities of the Contraclor for correc-
tion of defeclive work and completion of the Construc-
tion Contract;
6.2 Additional l€al, design professional and delay
costs resultang from the Contracto/s Oefault, and re-
sulting from the actions or failure to act of the Surety
under Paragraph 4: and
6.3 Liquidated damages, or if no liquidated damages
are specitied in the Construction Contract, actual dam-
ages caused by delayed performance or non-perfor-
mance of the Contractor.
7. The Surety shall not be liable to the Owner or others for
obligations of the Contractor that are unrelated to the Con-
struction Contract. and the Balance of the Contract Price
shall not be reduced or set off on account oI any such
unrelated obligations. No right of action shall accrue on
this Bond to any person or entity other than the Owner or
its heirs, executors, administrators, or successors.
8. The Surety hereby waives notice of any change, includ-
ing changes of time, to the Construction Contract or to
related subcontracts, purchase orders and other obliga-
tions
9. Any proceeding, legal or equitable, under this Bond
may be instituted in any court ol competent jurisdiction in
the location in which the work or part of the work rs located
and shall be instituted within two years after Contraclor
Default or within two years after the Contractor ceased
working or within two years after the Surety refuses or fails
to perform jts obligations under this Bond, whichever oc-
curs first. lf the provisions of this Paragraph are void or
prohibited by law, the minimum period of limitation available
AIA OOCUXENI A3l2 PERaORI|ANCC BONO AilD PAYIEI{T BOiIO OECETBER lla,. EO. AIA lt,
AMERICAN INSTITUTE OF ARCHITECTS, I735 I{EW YORX AVE,, N.W.,WASHf{GTON O-C- 2O(x|6
THIRD PRIIITING. MARCH,IOiT
A 312-198,1 2
able to sureties as a defense in the jurisdiclion of the suit
shall be applicable.
10. Notice to the Surety, the Owner or the Contractor shall
be mailed or delivered to the address shown on the sig-
nature page.
I l. Vvhen this Bond has been furnished to comply with a
statutory or other legal requirement in the location where
the constructaon was to be performed, any provision in this
Bond conflicting with said statutory or legal requirement
shall be deemed deleted herefrom and provisions con-
forming to such statutory or other legal requirement shall
be deemed incorporated herein. The intent is that this
Bond shall be construed as a statutory bond and not as a
common law bond
12.1 Balance ofthe Contract Price: The total amount
payable by the Owner to the Contractor under the
Construclion Contract after all proper adjustments
have been made, including allowance to the Con-
tractor of any amounts received or to be received by
the Owner in seftlement of insurance or other claims
for damages to which the Contraclor is entitled, re-
duced by allvalid and proper payments made to or on
behalf of the Contraclor under the Construction Con-
tracl.
12.2 Construction Contracl: The agreement between
the Owner and the Contractor identified on the sig-
nature page, including all Contracl Documents and
changes thereto.
12.4 Owner Dehult: Failure of the Owner, which has
neither been remedied nor waived, to pay the Con-
traclor as required by the Construction Contract or to
perform and complete or comply with the other terms
thereof.
MODIFICATIONS TO THIS BOND ARE AS FOLLOWS:
(Space is provided below for additional signatures of added parties, other than those appearing on the cover page.)
CONTRACTOR AS PRINCIPAL SURETY Company
(Corporate Seal)(Corporate Seal)
Signature n
Name and
Address:lO Zvm'o TLnL,
AIA DOC1JM ENT A31 2 PERFORMANE BOND AND PAYMENT BOND DECEM BER 1 084 30 , ALA O
THEAMERICAI{INSNIUTEOFARCHITECTS,I'36NE$'YORKAVE-,I{,W.,WASHINGTON,O.C,20006
THIRD PRINTING . MARCH I9A7
a3t2-1984 3
12 DEFINITIONS
12.3 Contraclor Default: Failure of the Contractor.
which has neither been remedied nor waived, to per-
form or otherwise to comply with the terms of the
Construction Contract.
Signature: _
Name and Title:
Address: