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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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Like all performance bonds, whether standardized or not, the terms of A define performance required by the parties. Enumerates the information that must be included in a claim against the payment bond, which includes: Critically, however, the revised A has added a new Section 4, which expressly provides that none of the notice provisions set forth in Section 3.

The procedures for an owner to declare default on a performance bond differ across these standard forms. Many sureties have created their own custom modifications to the A payment bond form; the language and approach of such modifications vary among surety companies.

The a132 Stonington Water Street Assoc. Aix the principal indemnifies the surety for amounts paid out, so the Principal ultimately bears the risk of paying unsubstantiated claims! Whether or not a business relies on the AIA bond forms, another vendor, or its own internal forms, it is critical to understand and appreciate the legal force and effect of the forms selected.


The Court noted, that under Florida law, bond language must be strictly construed against the surety.

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

Is the Agreement really Mutual? Each surety company will make its own decision on whether and how to write the A payment bond form. Email marketing by Targetware. Subscribe to the HLG Newsletter! Search Common Sense Contract Law.

AIA A Private Performance Surety Bond | Types of Surety Bonding

The rationale focused on Paragraphs 6 of the A, which provides: The owner also must not be in default under the contract. Make sure they understand that unmodified A payment bond forms will be harder to obtain. When it issues a payment bond, a surety agrees to cover the risk that a contractor will fail to pay its subcontractors, laborers, or suppliers with x312 claims for unpaid labor and material.

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.

The AIA A performance bond is the predecessor to A and is still used on construction projects.

New Year, New Performance Bond: The AIA A312-1984 Performance Bond Expires Dec. 31, 2011

To use this website, you must agree to our Privacy Policyincluding cookie policy. A contractor may also demand performance and payment bonds from its subcontractors.

The second condition precedent differs between A and its predecessor, A 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.


What is a Letter of Intent? The procedures for making a claim under standard form bonds differ 3a12 the type of bond and the promulgating association. 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 shall be deemed incorporated herein.

The last time the AIA revised the A was in Parties intending to use a standard form payment bond should note the procedural differences for making a claim between the AIA and ConsensusDocs forms. New Year, New Performance Bond: Surety industry provided comments and input in the development of the forms but is not the publisher of the forms. Mayo vCard Associate Atlanta, Georgia.

The owner must then agree to pay the balance of the contract price to the surety, or to another contractor selected by the surety. This time of joyful reflection is even more rewarding when the coming new year will bring with it some major changes to the standard performance bond form issued by the American Institute of Architects. Forcing the Issue Construction Unemployment Falls to 9.