Common use of Construction Bond Clause in Contracts

Construction Bond. (a) (Construction Bond): The State may require Project Co to make a demand under the Construction Bond in accordance with the Project Agreement and the Finance Direct Deed. (b) (Demand on Construction Bond): The D&C Subcontractor must inform the State when a demand is made under the Construction Bond promptly after it becomes aware of such demand. (c) (Project Co to indemnify): Project Co must indemnify the D&C Subcontractor on demand against any Claim or Liability the D&C Subcontractor suffers or incurs arising in connection with the State requiring Project Co to make a demand under the Construction Bond in accordance with clause 3.6(a), except to the extent that such Claim or Liability arises in connection with a breach by the D&C Subcontractor of its obligations under the D&C Subcontract.