Common use of Performance and Payment Bond Clause in Contracts

Performance and Payment Bond. Prior to construction of any Improvements in the Premises, as they currently exist, Company shall record and post a Notice of Commencement. No work hereunder shall be commenced by or at the direction of Company until Company, or Company’s contractor has, at no cost or expense to the Aviation Authority provided to Aviation Authority from a company reasonably acceptable to the Chief Executive Officer (i) a surety Payment Bond for the benefit of Aviation Authority, in the form attached as Exhibit "E", in an amount equal to the total estimated cost of the work, which bond shall guarantee the payment of all contractors' and subcontractors' charges and charges of all other persons and firms supplying services, labor, materials or supplies in connection with the work, and (ii) a surety Performance Bond for the benefit of Aviation Authority, in the form attached as Exhibit "F", in an amount equal to the full value of the construction contract which shall guarantee the prompt completion of the work by Company in accordance with the approved plans and specifications. Company, or Company’s contractor as applicable, shall maintain the Performance Bond in effect for at least five (5) years after the completion of Improvement. In the event Payment and Performance Bonds are posted by Company’s contractor, Company shall continue to be responsible to Aviation Authority for completion of all Improvements in accordance with the approved plans, and payment of all sums to ensure no claims against the Improvements by contractor, subcontractor or any other person supplying services, labor, materials or supplies in connection with the work.