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CONTRACTS & DOCUMENTS
"The AIA took a good, hard look at its bid bond documents this year," Ken Cobleigh, managing director and counsel for the American Institute of Architects Contract Documents® content team, tells DFAMR. "For many, many years AIA bond forms were the standard in the industry. The last revision was many years ago in 1984. So revising them is big news for the industry because bond forms play a big role in ensuring protection for the various parties during construction. Architects need to know about bonds because they have an obligation to discuss with owners why bonds are essential for risk management. Bonds are part of making sure a project is completed successfully."
The AIA also issued its first pro bono agreement and two additional single purpose entity (SPE) agreements to complete its roster of integrate project delivery (IPD) agreements. "The AIA Contract Documents program continues to lead the industry toward greater collaboration among architects, owners, and contractors," notes Cobleigh in a June 8 AIA press release.
Updated bond forms. Given that AIAs bond forms provide the framework for most bonding agreements in the A/E/C industry, going back to the first form in 191 1, the AIA initiated an industrywide collaboration in order to update the forms. Not only did it work closely with the Surety & Fidelity Association of America and the National Association of Surety Bond Producers, which jointly published the forms with the AIA, but 1 1 leading industry players, including both legal and professional organizations, were involved in the extensive updating process. As the release notes: "This cross-disciplinary effort will help ensure the long-term viability of project bonding as a way to manage risk and facilitate construction in an ever-changing industry."
In addition to addressing key current issues identified by industry representatives, the revision replaces archaic language with modern terminology used in other AIA documents. Here is a brief summary of some changes in bid bonds (A31 0-201 0) and performance and payment bonds (both are included in A312201 0). (Note: All AIA contract document and agreement numbers are trademarked.)
Bid bonds. Some of the major changes include:
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