HomeMy WebLinkAbout32 - Kyburz unable to complete project - USF&Gt AGREEMENT
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 Eagle
_County Justice Center ( "Project ")
2. USF &G provided payment and performance bonds ( "Bonds ")
naming Owner as Obligee and Kyburz as Principal.
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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 pr®mises 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
oxincrease 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
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.
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Dated March 1985
United States ?Fidelity and Guaranty Co.
(Owner)
xxx County of Eagle,State of Colorado
By its Board of County Commissioners
R:kx y: David E. Mott, Chairman