Interim Payment Bond Form Available for Contract Documents: National Society of Professional Engineers Encourages Use of New Form

Release Status: 
Immediate
Contact Name: 
Stacey A. Ober
Contact Number: 
703-684-2815
City: 
Alexandria
State: 
Virginia
Date: 
Sunday, May 11, 2008

The Engineers Joint Contract Documents Committee, a leading publisher of construction contracts and forms, has published a revised edition of its standard Payment Bond form. The new form, EJCDC C-615(A), is intended to be used on an interim basis as a substitute for EJCDC's standard payment bond form, EJCDC C-615, pending a full review and re-issuance of the standard form. The National Society of Professional Engineers encourages the purchase and use of the interim form.

The interim form addresses a concern regarding the misapplication of the standard form's section on the time limit for the surety's response to a claim on the bond. That concern arose as a result of court decisions in a few jurisdictions, and led users and sureties to request a revision of the form. The Surety and Fidelity Association of America is recommending the acceptance of the interim form, EJCDC C-615(A), to its member sureties. The National Association of Surety Bond Producers has also expressed its support of the interim form.
 
EJCDC intends to analyze and take appropriate action on the suggested revisions, with full input from all involved parties, including owners, contractors, subcontractors, suppliers of materials and equipment, and design professionals, as well as sureties and brokers. The goal of the analysis will be to address the need for clear and reasonable procedures that serve the interests of the project and promote prompt payment of meritorious claims, without creating unintended or open-ended liabilities for sureties and bond indemnitors. On an interim basis, EJCDC has removed paragraph 6, pending the results of a systematic analysis and dialogue; the great majority of the standard form's text, including the fundamental obligations of the surety when a subcontractor or supplier is not paid, remain unchanged in C-615(A).

A memo regarding the changes and a sample of the Payment Bond form can be found at http://www.nspe.org/ejcdc/index.html.

EJCDC documents are immediately downloadable in MS Word format, are user-friendly, and their usability for multiple projects makes them a cost-saving alternative to other documents on the market. They are also peer created and consistently reviewed, meaning users get the most balanced, fair, and updated documents available on a continual basis.

In addition to the newly updated construction documents, EJCDC offers contract documents in the following categories: owner/engineer; engineer/subconsultant; funding agency editions; procurement; and design-build. NSPE members enjoy a significant discount on the cost for the documents, which can be immediately purchased and downloaded at www.nspe.org/ejcdc/index.asp.

Additional Notes: 

The National Society of Professional Engineers is the national society of licensed professional engineers from all disciplines that promotes the ethical and competent practice of engineering, advocates licensure, and enhances the image and well-being of its members. Founded in 1934, NSPE serves more than 45,000 members and the public through 53 state and territorial societies and more than 500 chapters. For more information, please visit www.nspe.org.