Replies

1. 
   Jason_DD_ | Oct 29, 2001 11:27pm | #1

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   In Scott R’s thread about contracts, some issues were raised as to the value (to contractors) of the AIA contracts. I am neither a proponent nor opponent of them. They do exist and are in common usage, and provide a nationwide “standard” as applicable by local laws.

   For discussion’s sake, I am posting the following excerpts, taken from “Standard Form of Agreement Between Owner and Contractor, where the basis of payment is a Stipulated Sum” 1997 Edition, AIA Document A101-1997. I am not posting the document in its entirety, only some of the terms/clauses that I thought contractors may find unfavorable. This agreement is meant to be used with “General Conditions of the Contract for Construction” AIA DocumentA201-1997. When I get a chance, I will try to post a similar thread with excerpts from A201.

   Excerpts will be in the next post, as this is going to get long.

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   Jason_DD_ | Oct 29, 2001 11:28pm | #2

   *Excerpts:Each page, in right margin “This document has been approved and endorsed by The Associated General Contractors of America”.Article 1: The Contract Documents consist of this Agreement, Conditions of the Contract, Drawings, Specifications, Addenda issued prior to execution of this Agreement…Article 2: The Contractor shall fully execute the Work descried in the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others.2.3.3 The Contractor shall achieve Substantial Completion of the entire Work not later than ______ days from the date of commencement….(Insert provisions, if any, for liquidated damages relating to failure to complete on time or for bonus payments for early completion of the Work).5.1.3 Provided that an Application for Payment is received by the Architect not later than the ____ day of a month, the Owner shall make payment to the Contractor not later than the ____day of the ______ month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner no later that ______ days after the Architect receives the Application for Payment.5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor’s Application for Payment.5.1.9 Except with the Owner’s prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site.5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when:5.2.1.2 a final Certificate for Payment has been issued by the Architect.5.2.2 The Owner’s final payment to the Contractor shall be made no later than 30 days after the issuance of the Architect’s final Certificate for Payment, or as follows…7.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located.

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   RKM | Oct 30, 2001 12:15am | #3

   *Jason:A101/201 is the "big gun" contract, one that I've seen used to build hospitals and the like, where there may be many millions of $ involved. While it undoubtedly gets used occasionally by people who feel more comfortable with lots of "fine print", there are much shorter, less onerous, AIA contracts that are probably more suitable for residential and small commercial work. For example, A105/205 or A107. The 205 General Conditions is only 4 pages long.see http://www.aia.org/documents/synopses.asp for a list.Richard

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   Jason_DD_ | Oct 30, 2001 12:31am | #4

   *Richard:Thanks for the insight.We use 101 in our office even for not-so-big projects. I have the AIA Handbook of professional practice pulled down off the shelf now, so will review and post and time permits. General Conditions for A107 are only 15 pages, as compared to 24 pages of A201.While this is certainly an interesting discussion, our attitude towards a lot of this is:1. return phone calls2. fix the technical problems3. consider the other side(s) perspective(similar to blue/Ed's apologize, fix the problem, apologize 3 step program). Often times, following these simple steps will keep everyone out of court (or arbitration, or mediation, or with a brick through a window...).Jason

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   Jason_DD_ | Oct 30, 2001 12:31am | #5

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