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THE FINAL PREMIUM IS Issued in two (2) original counterparts
<br />PREDICATED ON THE
<br />FINAL CONTRACT AMOUNT 27
<br />21 CAC No 76
<br />FAITHFUL PERFORMANCE BOND BBond ond No $7 7 6
<br />0
<br />Whereas, the City of Redlands ("City"), State of California, and DEARK E&C, INC
<br />(hereinafter designated as "Principal") have entered into an agreement dated June 21, 2022
<br />("Agreement") whereby Principal agrees to install and complete certain public improvements (the
<br />"Work"), which said Agreement is identified as Senior Center Outdoor Dining Facilities
<br />Construction, Project No 03012022JN and is hereby referred to and made a part hereof; and
<br />Whereas, said Principal is required under the terms of the Agreement to furnish a bond for
<br />the faithful performance of the Work, now, therefore, we, the Principal and,
<br />Merchants Bonding Company (Mutual) , as Surety, are held and firmly bound unto the City in the penal
<br />sum of Three hundred fourteen thousand one hundred ninety dollars ($314,190 00) lawful money of
<br />the United States, for the payment of which sum we bind ourselves, and our heirs, successors,
<br />executors and administrators, jointly and severally, firmly by these presents
<br />The condition of this obligation is such that if the above bounded Principal, his or its heirs,
<br />executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
<br />and truly keep and perform the covenants, conditions and provisions in the Agreement and any
<br />alteration thereof made as therein provided, on his or its part, to be kept and performed at the time
<br />and in the manner therein specified, and in all respects according to their true intent and meaning,
<br />and shall faithfully fulfill the one-year guarantee of all materials and workmanship, and shall
<br />defend, indemnify and save harmless the City and its elected officials, officers, agents and
<br />employees, as therein stipulated, then this obligation shall become null and void, otherwise it shall
<br />be and remain in full force and effect.
<br />As a part of the obligation secured hereby and in addition to the face amount specified
<br />therefor, there shall be included costs and reasonable expenses and fees, including reasonable
<br />attorneys' fees, incurred by the City in successfully enforcing such obligations, all to be taxed as
<br />costs and included in the judgment rendered.
<br />As a condition precedent to the satisfactory completion of the Work, the above obligation
<br />shall hold good for a period of one (1) year or longer if required by the Agreement after the
<br />acceptance of the work by the City, during which time if the Principal shall fail to make full,
<br />complete, and satisfactory repair and replacements and totally protect the City from loss or damage
<br />made evident during this period from the date of completion of the Work, and resulting from or
<br />caused by defective materials or faulty workmanship, the above obligation in penal sum thereof
<br />shall remain in full force and effect. The obligations of Surety hereunder shall continue so long as
<br />any obligation of the Principal remains
<br />Whenever the Principal shall be, and is declared by the City to be, in default under the
<br />Agreement, the City having performed the City obligations thereunder, the Surety shall promptly
<br />remedy the default, or shall promptly, at the City's option.
<br />1 Complete the Work in accordance with its terms and conditions, or
<br />2 Obtain a bid or bids for completing the Work in accordance with its terms and
<br />conditions, and upon determination by Surety of the lowest responsive and responsible bidder,
<br />arrange for a contract between such bidder and the City, and make available as work progresses
<br />sufficient funds to pay the cost of completion of the Work less the balance of the Agreement price,
<br />but not exceeding, including other costs and damages for which Surety may be liable hereunder, the
<br />amount set forth above The term "balance of the Agreement price," as used in this paragraph, shall
<br />L.\ca\Agreements\Deark E&C Contract.PW 3 1.FY21-0141.doc.jn
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