Common use of The Subcontractor Clause in Contracts

The Subcontractor. if required, shall furnish a performance bond and a payment bond on the Contactor’s bond forms, dated as of the date of this Subcontract, each in the penal sum of 100% of the Subcontract Amount, with a good and sufficient surety acceptable to the Contractor and having a Best rating of A- or better. In the event that this Subcontract is signed without bonds being furnished by the Subcontractor, such signing shall not constitute a waiver of the Subcontractor's obligation to furnish the required bonds. The Contractor may demand performance and payment bonds at any time before final payment is made to the Subcontractor and failure by the Subcontractor to furnish such bonds, within five (5) days after demand, shall constitute a default hereunder. In the event that the Surety on any bonds furnished by or on behalf of the Subcontractor becomes insolvent, ceases doing business, or receives a downgraded Best rating less than A-, the Subcontractor shall immediately furnish, without expense to the Contractor, replacement bonds that meet the requirements stated above.