August 8, 2019 posted by

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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Feedback Privacy Policy Feedback. Many aiia have created their own custom modifications to the A payment bond form; the language and approach of such modifications vary among surety companies. 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.

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

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. Parties intending to use a standard form payment bond should note the procedural differences for making a claim between the AIA and ConsensusDocs forms.

Changes the performance bond requirements with respect to holding a conference between the Owner, Surety and Contractor upon the default of the Contractor.

The AIA provides two distinct performance bond forms: Educate owners a3312 design professionals about the implications of specifying an unmodified A payment bond form! 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.

The rationale focused on Paragraphs 6 of the A, which provides: By issuing a performance bond, a surety guarantees that work a aa312 has agreed to perform will be delivered to the project owner.


Other significant changes under the version of the A are: First, the owner must notify the contractor and surety that it is considering declaring the contractor in default. Forcing the Issue Construction Unemployment Falls to 9. To use this website, you must agree to our Privacy Policyincluding cookie policy.

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. New Year, New Performance Bond: Enumerates the information that must be included in a claim against the payment bond, which includes: The procedures for making a claim under standard form bonds differ by the type of bond zia the promulgating association.

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

A contractor may also demand performance and payment bonds from its subcontractors. In sum, these changes to A counsel aiz favor of closely reviewing any performance bonds used on a given project to ensure that both Contractor and Surety performance is properly secured.

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

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

Remember the principal indemnifies the surety for amounts paid out, so the Principal ultimately bears the risk of paying unsubstantiated claims! 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.

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.


XL Specialty Insurance Co. Surety Response Important Provisions to Understand: Facebook Twitter Google Linked In. If using A, the owner need not request a meeting if it provides notice of potential default to the contractor and surety. About project SlidePlayer Terms of Service. The conditions to make a claim under ConsensusDocs require the owner to: Work with your local contractor associations to bring awareness to and understanding of these issues! An untimely or non-response has harsh consequences for principal and surety alike!

To make this website work, we log user data and share it with processors. With regard to a3112, ConsensusDocs distinguishes between first-tier subcontractors and suppliers those with a direct contract with the contractor and lower-tier claimants those without such privity.

Claimant Notice Important Provisions to Understand: Home Attorneys Adam C. The last time the AIA revised the A was in Mayo vCard 3a12 Atlanta, Georgia. Published by Garry Moore Modified over 3 years ago. The payment bond form used most frequently on private projects, as well as on many state and local public works, is AIA A The procedures for an owner to declare default on a performance bond differ across these standard forms.

Surety industry provided comments and input in the development of the forms but is not the publisher of the forms. Like all performance bonds, whether standardized or not, the terms of A define performance required by the parties. Under A, the owner must, within 15 days, request and attempt to arrange a meeting with the contractor and surety to see if an agreement can be reached qia future performance.

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