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: AIA Document A312™–2010 replaced AIA Document A312™–1984, which expired on December 31, 2011.
Dispute Resolution—Mediation and Arbitration.
This document contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process, but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act.
The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, contact the American Arbitration Association at (800) 778-7879 or visit the website at www.adr.org.