Surety Waives Defense to AIA A312 Payment Bond Claim by Failure to Object Within Bond’s 45- Day Limit

Nat’l Union Fire Ins. Co. v. David A. Bramble, Inc.
388 Md. 195, 879 A.2d 101 (Md. July 21, 2005)

In connection with construction of a resort hotel project, general contractor Clark Construction provided a payment bond securing its obligation to pay its subcontractors for all labor, material, and equipment required. The bond was a standard American Institute of Architects document A312 form, used without alteration to the form language, issued jointly by three sureties. In the event claim was made against the bond, it provided that the surety would “Send an answer to the Claimant, with a copy to the Owner, within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed.” Continue reading “Surety Waives Defense to AIA A312 Payment Bond Claim by Failure to Object Within Bond’s 45- Day Limit”