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NEWS
AIA, SFAA, and NASBP Announce Revision
June 6, 2008

The American Institute of Architects (AIA), The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) joined in announcing recently a revision to AIA’s commonly used A312-1984 Performance Bond and Payment Bond. To see the revision, go to www.aiacontractdocuments.org. The revision provides an interim response to surety concerns that the Payment Bond has been incorrectly interpreted in the courts. Over the coming months, the AIA will work with SFAA, NASBP and organizations representing owners, contractors, subcontractors and other potential bond claimants to review fully and overhaul as necessary both A312-1984 Performance Bond and Payment Bond and A310-1970 Bid Bond.

The revision changes very few words in the A312 Payment Bond, but the changes provide relief to sureties without compromising the needs of those who may be making claims under the bond. For sureties, the revision extends the bond’s response time from 45 to 60 days and adds text to establish that if a surety does not respond in a timely manner, it does not thereby waive its defenses. However, a surety that fails to fulfill its obligations under Section 6 of the bond will have to indemnify the claimant for reasonable attorney’s fees the claimant incurs to recover amounts owed.


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