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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Understanding Surety Concerns with the AIA A312 Payment Bond Form Presenter: [Insert Name]

Remember the principal indemnifies the surety for amounts paid out, so the A12 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. A GIA is a standard, typical document in the construction.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policyincluding cookie policy. In sum, these changes to A counsel in favor of closely reviewing any performance bonds used on a given project to ensure that both Contractor and Surety performance is properly secured. We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system.

A claimant with privity may bring a claim to the surety if the claimant has not been paid in full within 90 days after it provided or performed the last of the work or labor. The case Stonington Water Street Assoc. My presentations Profile Feedback Log out. Forcing the Issue Construction Unemployment Falls to 9.


The procedures for making a claim under standard form bonds differ by the type of bond and the promulgating association. While AIA A requires notice to the contractor and surety before filing a lien, ConsensusDocs does not require claimants in privity with the contractor to provide notice of their claims before the applicable day period expires. A contains several procedural steps that the owner must follow to make a valid claim on the bond. A has been used as an industry standard bond form since its release more than 25 years ago, with no changes made until the revised form A was published in June A contractor may also demand performance and payment bonds from its subcontractors.

Principal must provide the surety with all claim information promptly and expeditiously!

Thoughts on the AIA A « Uncategorized « NY Construction Law BlogNY Construction Law Blog

About project SlidePlayer Terms of Service. 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.

Each surety company will make its own decision on whether and how to write the A payment bond form. Home Attorneys Adam C.

Thoughts on the AIA A312-2010

How can the surety make a proper determination as to aja merits of the w312 and the range of appropriate defenses in the absence of relevant facts and documentation?

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 proper claims for unpaid labor and material. Some sureties may write an unmodified A bond form, but only for particular accounts.

The conditions to make a claim under ConsensusDocs require the owner to: Parties intending to use a standard form payment bond should note the procedural differences for making a claim between the AIA and ConsensusDocs forms. 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. Work with your local contractor associations to bring awareness to and understanding of these issues! The AIA provides two distinct performance bond forms: Registration Forgot your password?


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. This form contains similar provisions to the AIA A, but with more modern language.

Mayo vCard Associate Atlanta, Georgia. Subscribe to the HLG Newsletter! Enumerates the information that must be included in a claim against the payment bond, which includes: The rationale focused on Paragraphs 6 of the A, which provides: Learning Point In this lesson, we will learn how to conclude the negotiation and sign the final written contract. Make sure they understand that unmodified A payment bond forms will be harder to obtain. The second condition precedent differs between A and its predecessor, A Educate owners and design professionals about the implications of z312 an unmodified A payment bond form!

AIA Makes Sweeping Changes to A Payment and Performance Bonds – Harrison Law Group

New Year, New Performance Bond: Employee or Independent Contractor? Is the Agreement really Mutual? These more nuanced provisions of the revised A should help prevent a situation in which the Surety assumes responsibility for completing a project, exhausts the penal sum of the bond before construction is completed and subsequently w312 off the job site.

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