AIA Document A312–2010 incorporates two bonds—one covering the contractor’s performance, and the other covering the contractor’s obligations to pay subcontractors and others for material and labor. In addition, AIA Document A312–2010 obligates the surety to act responsively to the owner’s requests for discussions aimed at anticipating or preventing a contractor’s default. For use and execution of a document, see its instructions »
AIA Document A312–2010 combines two separate bonds into one form. This is not a single combined Performance and Payment Bond. It is customary to issue these two bonds simultaneously and to pay one premium for both. The separate procurement of one bond without the other will normally not reduce the premium.
The Performance Bond is an assurance by the Contractor and the Contractor’s Surety that the work will be performed and completed in accordance with the terms of the Construction Contract. The Payment Bond is an assurance by the Contractor and the Contractor’s Surety that labor and materials bills incurred in connection with the Construction Contract will be paid. This assurance is limited by the amount of each bond. Normally, these bond forms are prepared for execution by the Surety or the Surety’s agent.
Note: A312–2010 replaces AIA Document A312™–1984, which expires on December 31, 2011.
A201™–2007, General Conditions of the Contract for Construction
A232™–2009, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition
A251™–2007, General Conditions of the Contract for Furniture, Furnishings, and Equipment
A503™–2017/2019, Guide for Supplementary Conditions
A533™–2009, Guide for Supplementary Conditions, Construction Manager as Adviser Edition
A701™–1997, Instructions to Bidders
A751™–2019, Invitation and Instructions for Quotation for Furniture, Furnishings, and Equipment
Changes from the previous edition.
In addition to generally updated language, among other changes, the A312–2010 Performance Bond adds language clarifying that the owner’s failure to comply with the notice requirements of Section 3.1 does not release the surety from its obligations under the bond except to the extent the surety demonstrates actual prejudice. Additionally, A312–2010 shortens the notice period for surety default under the bond from 15 days to 7 days. Further, the limit of the surety’s obligation to the amount of the bond does not apply if the surety elects to undertake and complete the contract itself.
The A312–2010 Payment Bond also has generally updated language. In addition to other changes, the period of time in which the surety must answer a Claimant’s Claim has been increased from 45 days to 60 days, and language has been added stating that a failure of the surety to answer or make payment in the time period specified is not a waiver of the surety’s and contractor’s defenses to the Claim, but may entitle the Claimant to attorneys’ fees.