The AIA A312 Bond Form Sucks and Here’s Why

The Lien Zone Podcast: Construction Law, Contracts, Liens, Bonds & Collections

Overview: In this episode, board-certified construction attorney Alex Barthet dives into the details of payment and performance bonds such as the AIA A312 (2010) bond form, and why it’s often preferred by those providing the bond. He also contrasts it with “manuscript” or custom bond forms that enable faster resolutions and broader definitions of default. Whether you’re an owner, general contractor, or subcontractor, understanding these differences helps you navigate and negotiate bonding terms to protect your interests on every project.

Highlights:

• A312 2010 Advantages & Drawbacks: Why this standard bond form benefits the bond provider by creating a slower claim process and potentially delaying a project’s progress when default occurs.
• Manuscript Bonds for Faster Action: How custom bond forms can allow the claimant to trigger default and remedy issues without having to fully terminate a subcontractor first.
• Negotiation is Key: Tips on pushing back against unfavorable bond forms and the importance of defining “default” broadly (or narrowly) depending on your role in the project.