Bonds and who secures them


1 comment

  • Avatar
    Aleksandar Stojkovic

    If payment bonds are required by the owner, it would be preferred to have A312 - Payment Bond as a supplementary form filled out between the owner and contractor. This way the owner is aware of the limitations of the payment bond, who the surety is...etc.

    I think "surety bond" can be used to refer to a payment bond, however, I think payment bonds are specific to contractor having funds to pay suppliers and sub-contractors. So it protects the owner from a mechanics' lien in the case that a subcontractor / suppliers isnt paid. Performance bonds are specific in regards to a contractor being able to execute the project as called for by the documents. 

    Bid bonds are only active during bidding - in that they warrant that if a contractor retracts from the stipulated agreement, either the next bidder can be awarded (but not more than a sum delineated on the bond itself). AIA has bid bond forms 

    Comment actions Permalink

Please sign in to leave a comment.

Powered by Zendesk