The Smith Manus Blog

The American Institute of Architects has released the revised versions of two AIA Bond forms – AIA Document A310 Bid Bond and AIA Document A312 Performance Bond and Payment Bond. The changes come after a year of revision and reviews proposed by representatives from leading surety bond associations. With the amount of consideration taken into account for these revisions, the new bond forms are expected to continue as the industry standard, representing the fair and balanced interests of their users.

The new forms retain the majority of the original language. The revisions to the bond forms were made to clarify language and to address concerns raised by stakeholders. Below is a “Commentary and Comparison” link released by the AIA which outlines each change in detail.

AIA Bond Form Commentary and Comparison

Here are links to samples of the two new bond forms:

AIA Document A310 – 2010, Bid Bond
AIA Document A312 – 2010, Payment and Performance Bond

Many environmental service firms and contractors face the need for surety bonds.

After years of favorable conditions and stability, the surety market is tightening – so much so that many large and established remediation contractors are having difficulty maintaining the bonding capacity they need for growth, while many small businesses are having problems qualifying for their first or next bond. Even traditional construction projects can face difficulties simply because there may be a minor environmental component in the scope of work. Companies involved with a small percentage of environmental work (as low as 10 percent) are often labeled as “environmental risks” by the surety industry.

Smith Manus specializes in working with businesses required to bond contracts with an environmental component.

Subdivision bonds mandated by local municipalities require builders, developers, and land owners to make specific improvements to property being subdivided.

In the current economic climate, many sureties are avoiding these bonds. Smith Manus has developed unique relationships with our insurance company partners which allow us to create aggressive solutions for our clients. It is essential to make sure you work with a company who has a deep understanding of this industry. With three decades of experience, Smith Manus can help you get the bonding capacity you need for your development projects.

Improved Terms & Conditions. Strong Relationships with industry-leading sureties allow Smith Manus clients access to more favorable terms and conditions. Smith Manus only utilizes collateral when relative to a specific risk, not as a blanket underwriting requirement. This approach frees up valuable bank credit.

Flexibility. Smith Manus grows with your business. We can develop increased capacity to support expanded work programs, acquisitions and the overall growth of your company.

Personal Service. Smith Manus is continually working to improve and develop how we do business. We understand the needs of your industry and build long-term relationships with our clients.

Cutting-Edge Operational Software. By utilizing software specifically developed and updated to produce surety bonds, Smith Manus handles many complex accounts.

Industry Presence. Smith Manus maintains membership and actively participates in numerous industry specific professional associations