These instructions apply equally to the Performance Bond and to the Payment Bond. Both bonds require identical information on them, but each bond must be executed separately. The completion of one bond e. Users should be careful not to mix one bond with the other. A common mistake is to fill in the cover page of the Performance Bond and to sign the signature page of the Payment Bond. In such a case, it is likely that neither bond will become binding.
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AIA Document A— 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. This assurance is limited by the amount of each bond.
Additionally, A— shortens the notice period for surety default under the bond from 15 days to 7 days. The A— Payment Bond also has generally updated language. Dispute Resolution—Mediation and Arbitration. This document contains provisions for mediation and arbitration of claims and disputes. 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 or visit the website at adr. Was this helpful?
Instructions: A312™-2010, Performance Bond and Payment Bond
AIA Document A— 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.
Never accept an AIA A312 performance bond from a subcontractor
Summary: A312™-2010, Performance Bond and Payment Bond