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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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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.

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. Enumerates the information that must be included in a claim against the payment bond, which includes: The AIA provides two distinct performance bond forms: Mayo vCard Associate Atlanta, Georgia.

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

Claimant Notice Important Provisions to Understand: Registration Forgot aiz password? 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 x312 the minimum requirements in applicable federal, state, or municipal statutes. Share buttons are a little bit aka.


But A does allow the surety itself to request such a meeting. We think you have liked this presentation. 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 walks off the job site.

For those claimants with privity, the payment bond does not require any notice be given to the surety or contractor. Forcing the Issue Construction Unemployment Falls to 9.

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

With the official retirement of the version, some reflection on the differences between the old and new forms is justified. Other significant changes under the version of the A are: The procedures for an owner to declare default on a performance bond differ across these standard forms. A is the most widely-used traditional performance bond in private construction.

Auth with social network: Employee or Independent Contractor? Home Attorneys Adam C.

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

In addition to the scaled-down conference requirements of Section 3. Educate owners and design professionals about the implications of specifying an unmodified A payment bond form! InConsensusDocs published a12 new standard form performance bond, ConsensusDocs The AIA A performance bond is the predecessor to A and is still used on construction projects.


This form contains similar provisions to the AIA A, but zia more modern language. To make this website work, we log user data and share it with processors. Principal must provide the surety with all claim information promptly and expeditiously! It is important to note that A incorporates the underlying contract by reference, which may contain additional requirements for declaring default and terminating the contractor. First, the owner must notify the contractor and surety that it is considering declaring the contractor in default.

The payment bond form used most frequently on private projects, aua well as on many state and local public works, is AIA A Make sure they understand that unmodified A payment bond forms will be harder to obtain. The default procedures under A are simpler than those of A 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.

Feedback Privacy Policy Feedback. The Court noted, that under Florida law, bond language must be strictly construed against the surety. Subscribe to the HLG Newsletter!