Common use of Subcontractor Bonds Clause in Contracts

Subcontractor Bonds. If requested by Owner, the Contractor shall furnish and deliver to the Owner Bonds with respect to the Work of those Subcontractors and/or trades performing the Work as specifically identified by Owner (collectively, the “Subcontractor Bonds”). Any such Subcontractor Bonds securing a Subcontractor’s performance and/or payment obligations shall be issued on AIA Document 312-1984 Payment Bond and AIA Document 312-1984 Performance Bond forms or other form(s) approved by Owner, and shall name Contractor and Owner as dual obligees thereunder. The Subcontracts shall require that the amount of each Subcontractor Bond shall be equal to one hundred percent (100%) of the subcontract price. The cost of such Subcontractor Bonds shall be a part of the Contract Sum. The Contractor shall expressly require in the relevant subcontract that it shall be the duty of the Subcontractor to advise the surety or sureties of any Change Orders that result in an increase to the subcontract price and to ensure that the amount of the Subcontractor Bonds required are updated to reflect and cover any such increases throughout the course of the Project. If required by ▇▇▇▇▇▇, the Lender shall be identified as a dual or co-obligee on each of these Subcontractor Bonds. Contractor shall furnish to Owner proof of any required Subcontractor Bonds prior to the start of the Work of the applicable Subcontractor.

Subcontractor Bonds. If requested by Owner, the Contractor shall furnish and deliver to the Owner Bonds with respect to the Work of those Subcontractors and/or trades performing the Work as specifically identified by Owner (collectively, the “Subcontractor Bonds”). Any such Subcontractor Bonds securing a Subcontractor’s performance and/or payment obligations shall be issued on AIA Document 312-1984 Payment Bond and AIA Document 312-1984 Performance Bond forms or other form(s) approved by Owner, and shall name Contractor and Owner as dual obligees thereunder. The Subcontracts shall require that the amount of each Subcontractor Bond shall be equal to one hundred percent (100%) of the subcontract price. The cost of such Subcontractor Bonds shall be a part of the Contract Sum. The Contractor shall expressly require in the relevant subcontract that it shall be the duty of the Subcontractor to advise the surety or sureties of any Change Orders that result in an increase to the subcontract price and to ensure that the amount of the Subcontractor Bonds required are updated to reflect and cover any such increases throughout the course of the Project. If required by ▇▇▇▇▇▇Lender, the Lender shall be identified as a dual or co-obligee on each of these Subcontractor Bonds. Contractor shall furnish to Owner proof of any required Subcontractor Bonds prior to the start of the Work of the applicable Subcontractor.