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HomeMy WebLinkAboutC85-032 Kyburz ConstructionAGREEMENT The parties to this Agreement are: 1. United States Fidelity and Guaranty Company ("USF&G") County of Eagle, State of Colorado By and 2. Through its Board of County Commissioners ("Owner") Premises: 1. Kyburz Construction Inc. ("Kyburz") entered into a contract with Owner for construction of a project known as Eaqle County Justice Center ("Project") 2. USF&G provided payment and performance bonds ("Bonds") naming Owner as Obligee and Kyburz as Principal. 3. Kyburz is unable to complete the Project or pay unpaid subcontractors and suppliers without financial help from USF&G and therefore Kyburz has defaulted to USF&G. 4. USF&G is prepared to offer financial assistance and to arrange for the completion of the Project to the limit Of its Bonds. 5. Owner wishes USF&G to provide the necessary financial help so that the Project can continue without interrup- tion. Therefore in consideration of the mutual promises below and for other good and valuable consideration, the parties agree as follows: 1. USF&G will pay unpaid suppliers and subcontractors of Kyburz and will arrange for the completion of the Project. 2. Owner will pay to USF&G(or such other party designated by USF&G) for the performance of the work of the Project all sums due in accordance with the general contract for the Project and agrees that all contract funds available for completion of the Project are dedicated to and are to be applied only to the completion of the Project. 3. The liability of USF&G as surety under the Bonds, is limited to the penal sum of the Bonds and nothing in this Agreement constitutes a waiver of such penal sum or an axincrease in the liability under the Bonds. All payments made or to be made by USF&G for the completion of the Project, including payments to Kyburz, subcontractors and suppliers of Kyburz and/or any completing general contractor \mil shall serve to reduce the penal sum of the Bonds. 4. USF&G, through this Agreement, is acting in its capacity as Surety on behalf of Kyburz and by signing this Agreement is not assuming any obligations or liabilities beyond those set forth in the Bonds. 5. Any notice or communication to USF&G under this Agreement shall be addressed to Mark Northup USF&G Insurance Company 800 Marquette Ave Minneapolis, Mn. 55402, or to such other address directed by USF&G in writing. The undersigned have read this Agreement, understand it and sign it voluntarily and with the knowledge and authority of the entity on behalf of which each signs. try-t=s T,• CItr/C To /3,4,d Dated March 1985 United States Fidelity and Guaranty Co. Y a? Z��4n;� I t B- C�• � f a / F (Owner) zxg County of Eagle,State of Colorado BY its Board of County Commissioners Rkx By: David E. Mott, Chairman