Common use of Construction Bonds Clause in Contracts

Construction Bonds. Prior to commencing construction of any improvements to the Premises or subsequent Alterations, Tenant shall furnish to Landlord a General Contractor’s performance and payment surety bond in the amount of the total estimated construction costs for the Improvements or Alterations, as applicable. The Performance and Payment surety bond shall be acceptable to Landlord in its commercially reasonable discretion and shall identify Landlord as a dual obligee.