By Bill Blancato, special to North Carolina Construction News. There is an old adage: “Never say never.” This is usually good advice, but when. Although there are several changes to the bond form that can be reviewed on the AIA’s website (Click Here for A Comparison Document), one modification. This document was electronically produced with permission of the AIA and Electronic Format A 1. AIA Document A – Electronic Format.

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Thoughts on the AIA A312-2010

Educate owners and design professionals about the implications of specifying an unmodified A payment bond form! XL A3122 Insurance Co. Cooperate with your bond producer and surety on any payment bond claims under A and provide all relevant information to the surety as promptly as possible.

This form contains similar provisions to the AIA A, but with more modern language. This seven day waiting period is a substantial reduction from the previous version of A, which required a day period before the Surety could be deemed in default.

Like all performance bonds, whether standardized or not, the terms of A define performance required by the parties. The AIA A performance bond is the predecessor to A and is still used on construction projects.

Q312 Year, New Performance Bond: Under the revised version of A, the process by which an Owner or other obligee can declare a non-performing Contractor or other principal in default has been significantly streamlined.

How can the surety make a proper determination as to the merits of the claim and the range of appropriate defenses in the absence of relevant facts and documentation?

When this Bond has been furnished to comply with a statutory or other legal requirement in the location of the Project, a provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted here from and provision conforming to such statutory or other legal requirement a31 be deemed incorporated herein.


Is the Agreement really Mutual? An untimely or non-response has harsh consequences for principal and surety alike! The procedures for making a claim under standard form bonds differ by the type of bond and the promulgating xia.

Make sure they understand that unmodified A payment bond forms will be harder to obtain. In Stoningtonthe owner complied with the notice and pre-default meeting procedures, but it failed to correctly declare the contractor in default aa reasons arose, failed to formally terminate the contractor in accordance with the incorporated terms of the construction contract, and improperly selected its own replacement contractor without consulting the surety.

Home – AIA Bond Forms

My presentations Profile Feedback Iaa out. The approach taken by the Court of Appeals of Maryland in National Union quickly took hold, and other states like Virginia and Florida followed suit. Similarly, a claimant lacking privity may also bring a claim on the bond after the same day period—as long as it has also provided the notice outlined above. Enumerates the information that must be included in a claim against the payment bond, which includes: The following article discusses the procedure for making claims on these standardized bonds on private projects and many public works projects.

The default procedures under A are simpler than those of A A GIA is a standard, typical document in the construction. Aka is the most widely-used traditional performance bond in private construction. When it issues a payment bond, a surety agrees to cover the risk that a contractor will fail a3112 pay its subcontractors, laborers, or suppliers with proper claims for unpaid labor and material.


Procedural Differences for Claims on Standard Form Performance and Payment Bonds – Smith Currie

With the official retirement of the version, some reflection on the differences between the a321 and new forms is justified. To make this website work, we log user data and share it with processors. AIA A and eds. Changes the performance bond requirements with respect to holding a conference between the Owner, Surety and Contractor upon the default of the Contractor. By issuing a performance bond, a surety guarantees that work a contractor has agreed to perform will be delivered to the project owner.

A contains several procedural steps that the owner must follow to make a valid claim on the bond.

Lastly, the AIA form requires that the owner not be in default itself on the contract and follow the contract termination procedures, including any opportunities to correct the cited deficiencies as mandated by the contract and x312 applicable law. The procedures for an owner to declare default on a performance bond differ across these standard forms.

Planning, Design and Construction

Given the import of recent legal developments and increased risks to contractors and sureties, sureties are reticent to write an unmodified A payment bond form. Auth with social network: Published by Garry Moore Modified over 3 years ago. In addition to the scaled-down conference requirements of Section 3. Home Attorneys Adam C.

Surety Response Important Provisions to Understand: Registration Forgot your password? Learning Point In this lesson, we will learn how to conclude the negotiation and sign the final written contract. The changes to Sections 3.