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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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 a132 default.

My presentations Profile Feedback Log out. Claimant Notice Important Provisions to Understand: If you wish to download it, please recommend it to your friends in any social system. The process for determining the procedural requirements of a specific bond should involve a detailed examination of the bond, with focus on the obligations imposed on the parties, as well as a comparison of the bond language against the minimum requirements in applicable federal, state, or municipal statutes.

Feedback Privacy Policy Feedback. 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.

Employee or Independent Contractor? Educate xia and design professionals about the implications of specifying an unmodified A payment bond form!

The owner also must not be in default under the contract. 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.

An untimely or non-response has harsh consequences for principal and surety alike!

Each surety company will make its own decision on whether and how to write the A payment bond form. Work with your local contractor associations to bring awareness to and understanding of these issues!


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

The following aiaa discusses the procedure for making claims on these standardized bonds on private projects and many public works projects.

This form contains similar provisions to the AIA A, but with more modern language. Surety Response Important Provisions to Understand: A contractor may also demand performance and payment bonds from its subcontractors.

For those claimants with privity, the payment bond does not require any notice be given to the surety or contractor. InConsensusDocs published a new standard form performance bond, ConsensusDocs The owner must then agree to pay the balance of the contract price to the surety, or to another contractor selected by the surety.

Registration Forgot your password? A12 Point In this lesson, we will learn how to conclude the negotiation and sign the final written contract. In addition a3112 the scaled-down conference requirements of Section 3.

New Year, New Performance Bond: The AIA A Performance Bond Expires Dec. 31,

Published by Garry Moore Modified over 3 years ago. 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. When so furnished, the intent is that this Bond shall be constructed as a statutory bond and not as a common law bond. Parties intending to use a standard form payment bond should note the procedural differences for making a claim between the AIA and ConsensusDocs forms.

Home – AIA Bond Forms

In Stoningtonthe owner s312 with the notice and pre-default meeting procedures, but it failed to correctly declare the contractor in default when 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 a3112 the surety. 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.


Surety industry provided comments and input in the development of the forms but is not the publisher of the forms. 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 the applicable law.

Other significant changes under the version of the A are: Like all performance bonds, whether standardized or aja, the terms of A define performance required by the parties.

Thoughts on the AIA A312-2010

Remember the principal indemnifies the surety for amounts paid out, so the Principal ultimately bears the risk of paying unsubstantiated claims! To use this website, you must agree to our Privacy Policyincluding a3122 policy. The last time the AIA aiq the A was in What is a Letter of Intent? But A does allow the surety itself to request such a meeting.

Accordingly, the court held the owner was barred from bringing its claim on aoa bond. However, as future litigation crops up out of this language of the new bond, it is likely that a surety will not be penalized as harshly as the sureties in National Union for the failure to provide a timely answer to a payment bond claim.

A GIA is a standard, typical document in the construction.

Provides in the payment bond that the Surety shall defend, indemnify and hold harmless the Owner against any liens, claims, suits or demands. The AIA provides two distinct a132 bond forms: