Free Construction of Building

If principal shall erect or cause to be erected a building in the manner provided in the mortgage deed of trust and in the plans and specifications and details and shall complete the building by _________[date], subject, however, to lockouts, strike, acts of God and other causes over which principal has no control, free and clear of any and all liens and incumbrances arising from claims of architects, mechanics, materialmen, laborers and others for labor done and material furnished in and about the construction of the building, and shall indemnify and save harmless obligee and holders of bonds from all suits, demands, counsel fees and damages of whatsoever nature which may be incurred or suffered by them on account of any architects, mechanics, laborers or other claims or liens that may now or in the future be entered against the building or the premises on account of the building construction, or in the event of default of principal for any cause whatsoever to erect and complete the building free from all liens and incumbrances according to the mortgage deed of trust and the plans, specifications and details, surety will save harmless obligee and bondholders from all cost, suits, demands, counsel fees and damages of whatever nature which may be incurred or suffered by them on account of architects, mechanics, laborers or other liens which are now or may in the future be entered against the building, then this obligation shall be void; otherwise it is to remain in full force and effect, but in no event shall surety's liability exceed the amount of the bond, and should principal fail to complete the building by _________[date], the damages to trustee or others shall not exceed the daily cost of carrying charges for the length of such delay of completion.

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