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HomeMy WebLinkAboutPomosl Fire Equipment Power CotsCONTRACTOR AGREEMENT: POWER COTS: OSHKOSH FIRE DEPARTMENT CITY OF OSHKOSH THIS AGREEMENT, made on the 261h day of April, 2018, by and between the CITY OF OSHKOSH, party of the first part, hereinafter referred to as CITY, and POMOSL FIRE EQUIPMENT, P.O. BOX 1918 NEVA ROAD, ANTIGO, WI 54409, hereinafter referred to as the CONTRACTOR, WITNESSETH: That the City and the Contractor, for the consideration hereinafter named, enter into the following agreement. The Contractor's proposal is attached hereto and reflects the agreement of the parties except where it conflicts with this agreement, in which case this agreement shall prevail. ARTICLE I. COMPONENT PARTS OF THE CONTRACT This contract consists of the following component parts, all of which are as fully a part of this contract as if herein set out verbatim, or if not attached, as if hereto attached: 1. Proposal Solicitation 2. This Instrument 3. Contractor's Proposal In the event that any provision in any of the above component parts of this contract conflicts with any provision in any other of the component parts, the provision in the component part first enumerated above shall govern over any other component part which follows it numerically except as may be otherwise specifically stated. ARTICLE II. PROJECT MANAGER A. Assignment of Project Manager. The Contractor shall assign the following individual to manage the project described in this contract: (Kevin Pomosl, Vice -President, Pomosl Fire Equipment) B. Changes in Project Manager. The City shall have the right to approve or disapprove of any proposed change from the individual named above as Project Manager. The City shall be provided with a resume or other information for any proposed substitute and shall be given the opportunity to interview that person prior to any proposed change. City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us ARTICLE III. CITY REPRESENTATIVE The City shall assign the following individual to manage the project described in this contract: (Chuck Hable, Oshkosh Fire Department) ARTICLE IV. SCOPE OF WORK The Contractor shall provide the services described in the City's Invitation for Bid for this Project titled "POWER COTS: OSHKOSH FIRE DEPARTMENT" dated March 12, 2018, and the contractor's bid form and materials attached as Exhibit A. If anything in the Bid Form conflicts with the Bid Specifications, the provisions in the Bid Specifications shall govern. The Contractor may provide additional products and/or services if such products/services are requested in writing by the Authorized Representative of the City. ARTICLE V. CITY RESPONSIBLITIES The City shall furnish, at the Contractor's request, such information as is needed by the Contractor to aid in the progress of the project, providing it is reasonably obtainable from City records. To prevent any unreasonable delay in the Contractor's work the City will examine all reports and other documents and will make any authorizations necessary to proceed with work within a reasonable time period. ARTICLE VI. TIME OF COMPLETION The work to be performed under this contract shall be completed no later than September 1, 2018. ARTICLE VII. PAYMENT A. The Contract Sum. The City shall pay to the Contractor for the performance of the contract the sum of $125,930.00 adjusted by any changes hereafter mutually agreed upon in writing by the parties hereto. Fee schedules shall be firm for the duration of this Agreement. B. Method of Payment. The Contractor shall submit itemized monthly statements for services. The City shall pay the Contractor within 30 calendar days after receipt of such statement. If any statement amount is disputed, the City may withhold payment of such amount and shall provide to Contractor a statement as to the reason(s) for withholding payment. C. Additional Costs. Costs for additional services shall be negotiated and set forth in a written amendment to this agreement executed by both parties prior to proceeding with the work covered under the subject amendment. ARTICLE VIII. CONTRACTOR TO HOLD CITY HARMLESS The Contractor covenants and agrees to protect and hold the City of Oshkosh harmless against all actions, claims and demands of any kind or character whatsoever which may in any way be caused by or result from the intentional or negligent acts of the Contractor, his agents or assigns, his employees or his subcontractors related however remotely to the performance of this Contract or be caused or result from any violation of any law or administrative regulation, and shall indemnify or refund to the City all sums including court costs, attorney fees and punitive damages which the City may be obliged or ad- judged to pay on any such claims or demands within thirty (30) days of the date of the City's written demand for indemnification or refund. ARTICLE IX. INSURANCE The Contractor shall provide insurance for this project that includes the City of Oshkosh as an additional insured. The contractor's certificate of insurance for this project is attached as Exhibit B. ARTICLE X. TERMINATION A. For Cause. If the Contractor shall fail to fulfill in timely and proper manner any of the obligations under this Agreement, the City shall have the right to terminate this Agreement by written notice to the Contractor. In this event, the Contractor shall be entitled to compensation for any satisfactory, usable work completed. B. For Convenience. The City may terminate this contract at any time by giving written notice to the Contractor no later than 10 calendar days before the termination date. If the City terminates under this paragraph, then the Contractor shall be entitled to compensation for any satisfactory work performed to the date of termination. This document and any specified attachments contain all terms and conditions of the Agreement and any alteration thereto shall be invalid unless made in writing, signed by both parties and incorporated as an amendment to this Agreement. In the Presence of: (Seal of Contractor if a Corporation.) APPROVED: F)�ty A ey CONTRACTOR / NSULTANT By: icc e i (Specify Title) 0 (Specify Title) CITY OF OSHKOSH By: I--- 7�� Mark A. Rohloff, City Manager An Pame *R.Ubrig, City Clerk I hereby certify that the necess- ary provisions have been made to pay'the liability which will accrue under this contract. City Comptroller 4dVWA4*1r*4 CITY OF OSHKOSH BID SPECIFICATIONS POWER COTS: OSHKOSH FIRE DEPARTMENT BID PROPOSAL FORM Page 1 of 1 From: Pomasl Fire Equipment (bidder's company name) BID PROPOSAL DEADLINE: TUESDAY, APRIL 3, 2018 @ 10:00 A.M. Date: March 30, 2018 Addenda: Receipt of Addenda numbered NIA of, NIA are hereby understood, acknowledged and included in bidder's bid proposal form. If no addenda were issued for this project please write "N/A" above. BASE BID: Includes all labor and materials to install 3 Power Cots on 3 Oshkosh Fire Department ambulances per bid specifications. TOTAL BASE BID $ 125,930.00 Includes Bid Bond (enclosed), Payment & Performance Bond, Insurance Certificate (enclosed) NOTE: Payment & Performance Bond will be issued once bid is awarded. (Base Bid Price — in Words) Stryker 6390 Power -LOAD: 1 -year parts, labor, travel Stryker 6506 Power Cot: 3 -year X -frame powertrain warranty, 2 -year bumper -to -bumper Warranty Details: Pomasl Fire Installation: 1 -year SIGNATURES Date: March 30, 2018 Name of Company: Pomasl Fire Equipment Submitted by: (name/title) Kevin Pomasl Email: kevin@pomasl.com P.O. Box -1918 Neva Road Address of Company: Antigo, WI 54409 Phone: 800-686-6886 Company Representative that will be named Project Manager for this project, if awarded the bid: Kevin Pomasl Vice President & Apparatus Sales Name Title Signature _54�1_Title 1CZ° 23 r PAMAFIR-01 MPLAMANN /4CDA0" CERTIFICATE OF LIABILITY INSURANCE DATE(MMIODIYYI'Y)04130/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER cNRAACT ROBERT J KLESSIG PHONE FAX (A/C, No, Ext): (A/C, No): McCormick-Klessig $ Assoc. Ltd 522 Clermont St PO Box 66 bMA' . bob@mccormickkiessig.com INSURER(S) AFFORDING COVERAGE NAIC I! Antigo, WI 54409 INSURER A: WEST BEND MUTUAL INS CO 15350 REMDAMAGE TSESO R(EaENTED 300000 INSURED INSURER B: ACCIDENT FUND INSURANCE INSURER C: POMASL FIRE EQUIPMENT INSURER D, P 0 BOX 267 INSURER E ANTIGO, WI 54409 INSURER F: rrrvrroAr^_cc r=DTIr:IrATG tur1M91PP- RFVI-q nN NIIMRFR- THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS- INSR TR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF mm POLICY EXPI LIMITS A X COMMERCIAL GENERAL LIABILrrY CLAIMS -MADE a OCCUR X ISO Form CG 2010 0898649 05101/2018 05/01/2019 EACH OCCURRENCE S 1,000,000 REMDAMAGE TSESO R(EaENTED 300000 MED EXP (Any oneperson) $ 10,000 X ISO Form CG 20 37 PERSONAL b ADV INJURY S 1'000'000 GEN'L AGGREGATE LIMIT APPLIES PER HPOLICY [X1 PET F] LOC OTHER: GENERAL AGGREGATE 2,000,000 PRODUCTS - COMP/OP AGG S 2'000'000 A AUTOMOBILE LIABILITY X ANY ALTO OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON yyNED AUTOS ONLY AUTO ONLY 0898649 05/0112018 05/0112019 COMBINED SINGLE LIMIT $ 1,000,nt)000 BODILY INJURY Per person)$ BODILY INJURY Per accident S OB EpRIZI AMAGE $ A X UMBRELLA LIAB EXCESS L1A8 HCLAIMS-MADE OCCUR 0898649 05/0112018 05/01/2019 EACH OCCURRENCE $ 2,000'000 AGGREGATE $ DED I I RETENTIONS 2,000,000 B WORKERS COMPENSATIONX AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNERIEXECUTNE YIN (Nand IM In NM EXCLUDED? U s, describe under DESCRIPTION OF OPERATIONS below N I A WCV8005134 05/0112018 0510112019 PER OTH- STATUTE 1 1 ER 100,000 EL. EACH ACCIDENT EL. DISEASE- EA EMPLOYEE $ 100,000 500,000 E.L. DISEASE - POLICY LIMIT DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If mores ace Is required) City of Oshkosh, and Its officers, council members, agents, employees and authorized volunteers are listed as an additional Insured. This certificate shall contain a provision that coverage afforded under the policies Will not be cancelled or non -renewed until at least 30 days prior written notice has been given to the City Clerk -City of Oshkosh. r`COTILrr•ATC Ur%I nao rAMrGI I ATIr1N ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE TY OF OSHKOSH CITY THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. CITY CLERK 215 CHURCH AVE AUTHORIZED REPRESENTATIVE PO BOX 1130 Oshkosh, WI 54903-1130 tarP---1.1. ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD WEST BEND A MUTUAL INSURANCE COMPANY* Bond Number 0898649 Bid Bond KNOW ALL BY THESE PRESENTS, That We, Pomasl Fire Equipment as Principal, and WEST BEND MUTUAL INSURANCE COMPANY, a corporation organized under the laws of the State of Wisconsin and having its principal office in Middleton, Wisconsin, in said State, as Surety, are held and firmly bound unto City of Oshkosh, 215 Church Avenue, Oshkosh WI 54903-1130 as Owner, in the full and just sum of Percent ( 5 %) of amount bid for the payment whereof said Principal binds its heirs, administrators, and executors and said Surety binds itself, its successors and assigns firmly by these presents WHEREAS, said Principal has submitted to said Owner a bid or proposal for Three power cots, with options per bid specifications, Three PowerLOAD systems, one for each power cot, and Installation of power cots and loaders into Oshkosh Fire Department owned ambulances per specifications. NOW THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH that if within Sixty days hereof and in accordance with said proposal a contract shall be awarded to said Principal and the said Principal shall enter into a contract for said work and shall furnish bond with surety as required for its faithful performance then this obligation shall be void, otherwise remain in full force and virtue. Signed and Sealed this 30th day of March 20 18 Principal: Pomasl Fire Equipment ( By:%� '!"„tel Z�� (SEAL) Witness: Name Typed: Kevin Po asl vice President Title Surety: West,Bend Mutual Insuroe Company B (SEAL) Witness: Name T ed: and reenin '—motto ey in Fact Title Agency Name: McCormick Klessig Insurance Agency Address: PO Box 66, 522 Clermont Street Antigo 'WI 54409 Phone Number: (715) 627-4302 MICHIGAN ONLY: This policy is exempt from the filing requirements of Section 2236 of the Insurance Code of 1956, 1956 PA 218 and MCL 500.2236. NB 0192 11 17 Page 1 of 1 PO Box 620976 1 Middleton, WI 53562 1 Phone: (608) 410-3410 1 Fax: (877) 674-2663 1 www.thesilverlining.com WEST BEND R MUTUAL. tNSURANCE COMPANY' Bond Number 2384588 Labor and Material Payment Bond KNOW ALL MEN BY THESE PRESENTS: That Pomasl Fire Equipment Inc of PO Box 267, 1918 Neva Road, Antigo, WI 54409 (Name and address of the Contractor) as Principal, hereinafter called Principal, and WEST BEND MUTUAL INSURANCE COMPANY as Surety, hereinafter called Surety, are held and firmly bound unto City of Oshkosh 215 Church Ave, Oshkosh, WI 54901-4747 (Name and address of the Owner) as Obligee, hereinafter called Owner, for the use and benefit of claimants as hereinbelow defined, in the amount of One Hundred Twenty Five Thousand Nine Hundred Thirty Dollars Dollars ($ 125,930.00 (Insert a sum equal to at least one-half of the contract price) for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Principal has by written agreement dated 04/26/2018 entered into a contract with Owner for Cots and cot loading systems for Oshkosh Fire Department in accordance with drawings and specifications prepared by NA (Name of Architect/Engineer) which contract is by reference made a part hereof, and is hereinafter referred to as the Contract. of NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that if the Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and material used or reasonably required for use in the performance of the Contract, then this obligation shall be void; otherwise it shall remain in full force and effect, subject, however, to the conditions outlined on the reverse side of this bond: Signed and Sealed this 26 day of April 20 18 Principal: Pomasl Fire Equipment c 17 By: f (SEAL) Witness: Name Typed:Kevin Pomasl Vice President Title Surety: ? Wes nd M t Insu ce Company By: (SEAL) Witness: Name T ed: S ND GREENING Attcrne In -Fact Title MICHIGAN ONLY: This policy is exempt from the filing requirements of Section 2236 of the Insurance Code of 1956, 1956 PA 218 and MCL 500.2236. NB 0011 11 17 Page 1 of 2 PO Box 620976 1 Middleton, WI 53562 1 Phone: (608) 410-3410 1 Fax: (877) 674-2663 1 www.thesilverlining.com Any suit under this bond must be instituted before the expiration of one (1) year from the date on which final payment under the contract falls due. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Owner named herein of the heirs, executors, administrators or successors of the Owner. Signed and Sealed this 26 day of April 20 18 Principal: Pomasl Fire E uipment In d By: (SEAL) Witness: Name Typed: Kevin Pomasl Vice President Title Surety: We nd M ltual In nce Company By: --- (SEAL) Witness: Name Typed: SAGREENING A orney-in- ct Title MICHIGAN ONLY: This policy is exempt from the filing requirements of Section 2236 of the Insurance Code of 1956, 1956 PA 218 and MCL 500.2236. Page 2 of 2 NB 0012 11 17 PO Box 620976 1 Middleton, WI 53562 1 Phone: (608) 410-3410 1 Fax: (877) 674-2663 1 www.thesilverlining.com CONDITIONS 1. A claimant is defined as one having a direct contract with the Principal or with a Subcontractor of the Prin- cipal for labor, material, or both, used or reasonably required for use in the performance of the Contract, labor and material being construed to include that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental of equipment directly ap- plicable to the Contract. 2. The above named Principal and Surety hereby jointly and severally agree with the Owner that every claim- ant as herein defined, who has not been paid in full before the expiration of a period of ninety (90) days after the date on which the last of such claimant's work or labor was done or performed, materials were furnished by such claimant may sue on this bond for the use of such claimant, prosecute the suit to final judgement for such sum or sums as may be justly due claimant, and have execution thereon. The Owner shall not be liable for the payment of any costs or expenses of any such suit. 3. No suit or action shall be commenced hereunder by any claimant. a. Unless claimant, other than one having a direct contract with the Principal, shall have given writ- ten notice to any two of the following: The Princi- pal, the Owner, or the Surety above named, within ninety (90) days after such claimant did or performed the last of the work or labor, or fur- nished the last of the materials for which said claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the materials were furnished, or for whom the work or labor was done or performed. Such notice shall be served by mailing the same by registered mail or certified mail, postage prepaid, in an envelope addressed to the Principal, Owner or Surety, at any place where an office is regu- larly maintained for the transaction of business, or served in any manner in which legal process may be served in the state in which the aforesaid pro- ject is located, save that such service need not be made by a public officer. Page 2 of 2 b. After the expiration of one (1) year following the date on which Principal released work on said Contract, it being understood, however, that if any limitation embodied in this bond is prohibited by any law controlling the construction hereof such limitation shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. c. Other than in a state court of competent jurisdic- tion in and for the county or other political subdi- vision of the state in which the project, or any part thereof, is situated, or in the United States District Court for the district in which the project, or any part thereof, is situated, and not elsewhere. 4. The amount of this bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder, inclusive of the payment by Surety of mechanics' liens which may be filed of record against said improvement, whether or not claim for the amount of such lien be presented under and against this bond. PO Box 620976 1 Middleton, WI 53562 1 Phone: (608) 410-3410 1 Fax: (877) 674-2663 1 www.wbmi.com NB 0011 11 17 AV - WEST BEND A MUTUAL INSURANCE COMPANY'* POWER OF ATTORNEY THE SILVER LINING Bond No. 2384588 Know all men by these Presents, That West Bend Mutual Insurance Company, a corporation having its principal office in the City of West Bend, Wisconsin does make, constitute and appoint: SANDY GREENING lawful Attorney(s)-in-fact, to make, execute, seal and deliver for and on its behalf as surety and as its act and deed any and all bonds, undertakings and contracts of suretyship, provided that no bond or undertaking or contract of suretyship executed under this authority shall exceed in amount the sum of: Four Hundred Thousand Dollars ($400,000) This Power of Attorney is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of West Bend Mutual Insurance Company at a meeting duly called and held on the 21St day of December, 1999. Appointment of Attorney -In -Fact. The president or any vice president, or any other officer of West Bend Mutual Insurance Company may appoint by written certificate Attorneys -In -Fact to act on behalf of the company in the execution of and attesting of bonds and undertakings and other written obligatory instruments of like nature. The signature of any officer authorized hereby and the corporate seal may be affixed by facsimile to any such power of attorney or to any certificate relating therefore and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the company, and any such powerso executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the company in the future with respect to any bond or undertaking or other writing obligatory in nature to which it is attached. Any such appointment may be revoked, for cause, or without cause, by any said officer at any time. In witness whereof, the West Bend Mutual Insurance Company has caused these presents to be signed by its president undersigned and its corporate seal to be hereto duly attested by its secretary this 22nd day of September, 2017. Attest gowArF"_ o0IRP Christopher C. Zwygart m 1 ' Kevin A. Steiner Secretary SF.ALeI Chief Executive Officer/President State of Wisconsin County of Washington On the 22nd day of September, 2017, before me personally came Kevin A. Steiner, to me known being by duly sworn, did depose and say that he resides in the County of Washington, State of Wisconsin; that he is the President of West Bend Mutual Insurance Company, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to said instrument is such corporate seal; that is was so affixed by order of the board of directors of said corporation and that he signed his name thereto by like order.' OTAJ9 = N_ r Juli A nedum PUBLIC `�:= Senior'Corporate Attorney 9rfi' 4�; Notary Public' g Co.,Washington WI . oFw}sc,• My Commission is Permanent The undersigned, duly elected to the office stated below, now the incumbent in West Bend Mutual Insurance Company, a Wisconsin corporation authorized to make this certificate, Do Hereby Certify that the foregoing attached Power of Attorney remains in full force effect and has not been revoked and that the Resolution of the Board of Directors, set forth in the Power of Attorney is now in force. Signed and sealed at West Bend, Wisconsin this 26th day of April 2018 ' pORPOFtATF SSF.AL .' Heather Dunn CP Vice President — Chief Financial Officer Notice: Any questions concerning this Power of Attorney may directed to the Bond Manager at NSI, a division of West Bend Mutual Insurance Company. 1900 S. 18,1, Ave. West Bend, Wl 53095 1 ph (262) 334-6430 1 1-800-236-5004 1 fax (262) 338-5058 1 www.thesilverlining.com WEST BEND A MUTUAL INSURANCE COMPANY' Bond Number 2384588 Performance Bond KNOW ALL MEN BY THESE PRESENTS: That Pomasl Fire Equipment Inc of PO Box 267, 1918 Neva Road, Antigo, WI 54409 (Name and address of the Contractor) as Principal, hereinafter called Principal, and WEST BEND MUTUAL INSURANCE COMPANY as Surety, hereinafter called Surety, are held and firmly bound unto City of Oshkosh of 215 Church Ave, Oshkosh, WI 54901-4747 (Name and address of the Owner) as Obligee, hereinafter called Owner, in the amount of One Hundred Twenty Five Thousand Nine Hundred Thirty Dollars Dollars ($ 125,930.00 ) for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Contractor has by written agreement dated for Cots and cot loading systems for Oshkosh Fire Department 04/26/2018 entered into a contract with Owner in accordance with drawings and specifications prepared by NA (Name of Architect or Engineer) which contract is by reference made a part hereof, and is hereinafter referred to as the Contract. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect. The Surety hereby waives notice of any alteration or extension of time made by the Owner. Whenever Contractor shall be, and declared by Owner to be in default under the Contract, the Owner having performed Owner's Obligations thereunder, the Surety may promptly remedy the default, or shall promptly 1. Complete the Contract in accordance with its terms and conditions, or 2. Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the lowest responsible bidder, or, if the Owner elects, upon determination by the Owner and the Surety jointly of the lowest responsible bidder, arrange for a contract between such bidder and Owner, and make available as Work progresses (even though there should be a default or a succession of defaults under the contract or contract of com- pletion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including other costs and damages for which the surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term "balance of the contract price", as used in this paragraph, shall mean the total amount payable by Owner to Contractor under the Contract and any amendments thereto, less the amount properly paid by Owner to Contractor. PROVIDED, FURTHER, that it is expressly agreed that the BOND shall be increased automatically and immediately, with- out the need for separate amendments hereto, upon amendment to the Contract that does not increase the contract price more than ten (10) percent, so as to bind the PRINCIPAL and the SURETY to the full and faithful performance of the CON- TRACT as so amended. The term "Amendment", wherever used in this BOND, and whether referring to this BOND, the Contract or the Loan Documents shall include any alteration, addition, extension, or modification of any character whatso- ever. NB 0012 11 17 Page 1 of 2 PO Box 620976 1 Middleton, WI 53562 1 Phone: (608) 410-3410 1 Fax: (877) 674-2663 1 www.thesilverlining.com