Common use of Upon Final Acceptance Clause in Contracts

Upon Final Acceptance. Developer shall provide a warranty bond, or such other security as is approved by TxDOT in its sole discretion, which shall guarantee performance of the Work required to be performed during the Warranty Term and which shall also constitute a payment bond guaranteeing payment to Persons performing such Work (“Warranty Bond”). The Warranty Bond shall be in an amount equal to 10% of the Price and shall be substantially in the form attached hereto as Exhibit 12, and shall be released upon expiration of the Warranty Term and: (a) receipt of (i) evidence satisfactory to TxDOT that all Persons eligible to file a claim against the Warranty Bond have been fully paid and (ii) unconditional releases of Liens and stop notices from all Subcontractors who filed preliminary notice of a claim against the Warranty Bond, and (b) expiration of the statutory period for Subcontractors to file a claim against the Warranty Bond if no claims have been filed.