Valdez Construction, Inc. 8/7/2023

City of Everett 00 72 00 - 51 15. LIABILITY AND INSURANCE ' 15.1 GENERAL Contractor bears all risk of loss, casualty or damage to installed Work prior to Final Acceptance, ' irrespective of whether the Owner has taken possession of the Project in whole or in part and notwithstanding the existence or availability of insurance or the insurance coverages required by the Contract Documents. 15.2 BONDS 15.2.1 Payment and Performance Bonds ' The Contractor shall provide a payment bond and a performance bond,each in the amount of 100 percent of the Contract Sum in the form required by the Contract. This bond shall serve as security for the faithful performance of the Work and as security for the faithful payment and satisfaction of the persons furnishing materials and performing labor on the Work. The bond shall be issued by a corporation duly ' and legally licensed to transact surety business in the State of Washington. Such bond shall remain in force throughout the period required to complete the Work,and thereafter for a period of three hundred sixty-five(365)calendar days after Final Acceptance. The bond must be executed by a duly licensed ' surety company,which is listed in the latest Circular 570 of the United States Treasury Department,as being acceptable as surety on federal bonds. No surety's liability on the bond shall exceed the underwriting limitations for the respective surety specified in Circular 570. The scope of the bond or the ' form thereof prescribed in these Contract Documents shall in no way affect or alter the liabilities of the Contractor to the Owner as set forth herein. 15.2.2 Maintenance Bond ' The Contractor shall,prior to the release of Final Payment,furnish separate Maintenance(or Guarantee) Bonds in form acceptable to the Owner written by the same corporate surety that provides the Payment and Performance Bond for this Contract. These bonds shall secure the Contractor's obligation to replace ' or repair defective materials and faulty workmanship for a minimum period of one(1)year after Final Payment and shall be written in an amount equal to one hundred percent(100%)of the Contract Sum,as adjusted(if at all). ' 15.3 INSURANCE 15.3.1 General ' The Contractor shall obtain and keep in force during the term of the Contract and until thirty(30)days after the Completion Date,unless otherwise indicated below,the following insurance with insurance companies or through sources approved by the State Insurance Commissioner pursuant to Title 48 RCW. ' 15.3.2 Insurer Rating The insurance provided must be with an insurance company with a rating of A-:VII or higher in the A.M. Best's Key Rating Guide,which is licensed to do business in the state of Washington(or issued as a surplus line by a Washington Surplus lines broker). The Owner reserves the right to approve the security of the insurance provided,the company,terms and coverage,and the Certificate of Insurance. 15.3.3 Claims Made Form Requirements ' If any policy is written on a claims made form,the retroactive date shall be prior to or coincident with the effective date of this Contract. The policy shall state that coverage is claims made,and state the retroactive date. Claims made form coverage shall be maintained by the Contractor for a minimum of ' three years following the expiration or earlier termination of this Contract,and the Contractor shall annually provide the Owner with proof of renewal. If renewal of the claims made form of coverage becomes unavailable, or economically prohibitive,the Contractor shall purchase an extended reporting 00 72 00 - 51 GENERAL CONDITIONS 1