Tues Tip: Check out the new AIA Bond forms

more+
less-

Have you seen the 2010 AIA 312 Payment Bond Form? If you regularly deal with AIA bonds, be sure to check out this blog post, entitled “What changes you need to know about in the new AIA A 312 Payment Bond” from the New York Construction Law Update Blog.

Of particular note:

There is a new section (7.3) that expressly states the surety’s failure to respond within sixty (60) days does not constitute a waiver of any potential defenses. However, the new AIA A312 also states that if the surety fails to respond and if the claimant has to bring an action to recover under the bond, and is successful, then the surety will be responsible for attorneys’ fees incurred by the claimant.

The new Section 16.1 provides certain minimum requirements that must be in the notice of claim to constitute a valid claim under the bond. Previous versions of the AIA A312 did not contain such minimum requirements and a claimant in a rush could potentially submit a simple letter identifying the project and setting forth the amount of its claim to try and squeeze in before the deadline to submit a claim.

Please see full tip below for more information.

LOADING PDF: If there are any problems, click here to download the file.