The American Institute of Architect’s (AIA) suite of design and construction documents are among the most popular industry form contracts. Every ten years the AIA reviews and updates its core documents, and early this Spring, announced the release of its updated contract documents.
Among the new changes include:
Communications Between Owners and Contractors : Expands the ability of owners and contractors to communicate directly while maintaining an architect’s ability to remain informed about communications that affect the architect’s services.
Owners’ Financial Ability to Pay for Project: Clarifies provisions requiring owner to provide proof it has made financial arrangements to pay for project.
Contractor Pay Application Requirements: Simplifies provisions for contractors to apply for, and receive, payments.
Insurance and Bond Requirements: Expands insurance and bond requirements and puts these requirements into an exhibit.
Warranty Requirements: Requires warranties to be issued in the name of the owner or transferable to the owner.
Termination for Convenience Requirements: Substitutes owner’s obligation to reimburse contractor “for reasonable overhead and profit on the work not executed” with “costs attributable to termination of subcontracts” and a “termination fee” in cases of termination for convenience. In agreements between owners and architects, includes area to indicate “Termination Fee” for terminations for convenience.
Role of Initial Decision Maker: Clarifies role of initial decision maker when disputes arise.
Waiver and Release Requirements: Requires contractors to submit releases and waivers of liens along with their applications for progress payments and to indemnify owners from liens if the owner has fully complied with its payment obligations.
“Minor Change” Disagreements: Permits contractors to refuse to perform work if it believes “minor change” will affect contract sum or contract time.
BIM and Digital Data: Defaults to use of AIA BIM and digital data exhibit.
Re-Design Due to Market Conditions: Eliminates requirement for architect to re-design for no additional compensation if he/she could not have reasonably anticipated the market conditions causing bids or proposals to exceed owner’s budget.
Additional Services Clarification: Additional Services identified at time of agreement now categorized as Supplemental Services to avoid confusing them with Additional Services that arise during the course of a project.
Architect Payments Based on Percentage Basis: Clarifies how architect’s progress payments are calculated when compensation is on a percentage basis.
The newly revised contract documents are:
A101-2017: Standard Form of Agreement Between Owner and Contractor Where the Basis of Payment is a Stipulated Sum
A102-2017: Standard Form of Agreement Between Owner and Contractor where the Basis of Payment is the Cost of Work Plus a Fee With a Guaranteed Maximum Price
A103-2017: Standard Form of Agreement Between Owner and Contractor Where the Basis of Payment is the Cost of the Work Plus a Fee Without a Guaranteed Maximum Price
A104-2017: Standard Abbreviated Form of Agreement Between Owner and Contractor (formerly A107-2017)
A105-2017: Standard Short Form of Agreement Between Owner and Contractor
A201-2017: General Conditions of the Contract for Construction
A401-2017: Standard Form of Agreement Between Contractor and Subcontractor
B101-2017: Standard Form of Agreement Between Owner and Architect
B102-2017: Standard Form of Agreement Between Owner and Architect Without a Predefined Scope of Architect’s Services
B103-2017: Standard Form of Agreement Between Owner and Architect for a Complex Project
B104-2017: Standard Abbreviated Form of Agreement Between Owner and Architect
B105-2017: Standard Short Form of Agreement Between Owner and Architect
C401-2017: Standard Form of Agreement Between Architect and Consultant
E204-2017: Sustainable Projects Exhibit
In addition, 17 new forms will be released later in Fall 2017.