Fill aia documents form instantly, download blank or editable online. Sign Document A Standard Form of Agreement Between Owner and . This document offers notes and explanations of the American Institute of Architects (AIA) Standard Form Agreement Between Owner and Contractor. As discussed in a May blog article, the American Association of Architects (AIA) revise their form agreements between owner and contractor.
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As discussed in a May blog articlethe American Association of Architects AIA revise their form agreements between owner and contractor approximately every 10 years, and these form documents were recently revised by the AIA a couple of months ago. The progress payment calculation has been simplified across the Standard Form Agreements and now includes, among other minor adjustments, a provision adding change directive amounts to the progress payment calculation and a provision subtracting amounts that the contractor does not intend to pay to subcontractors.
That change places a significant responsibility on a contractor to determine the safety of the means and methods contained in the contract, regardless of which party to the contract proposed those means and methods. Under the version, much of the insurance and bonds information has been removed from the AIA-A and placed into an exhibit that is attached to the Standard Form Agreements. As was the case with the prior version of A, an owner may terminate a contract at any time without cause.
Under prior versions of A and A, the date of commencement was, by default, the date of the agreement. The AIA-A and AIA-A are occasionally executed before the contract documents are finalized and the guaranteed maximum price or control estimate may contain certain assumptions.
The new version of A does not contain the notice or specificity requirements, placing the contractor in a weaker position in the event of termination. Under prior versions of these form agreements, this provision concerned material delays in final completion of the work only after substantial completion — the point at which the building can be occupied or used for its intended purpose.
The Standard Form Agreements also include a much more thorough procedure for withholding retainage. Negotiating for the best term could provide additional time for the contractor to finish work on a project. An experienced construction attorney can walk contractors through these changes and help them understand the effects of the changes before beginning negotiations on a new project.
AIA-A standard form agreement between owner and contractor where the basis of payment is a stipulated sum ; AIA-A standard form agreement between owner and contractor where the basis of payment is the cost of the work plus a fee with a guaranteed maximum price ; and AIA-A standard form agreement between owner and contractor where the basis of payment is cost of the work plus a fee without a guaranteed maximum price.
The new versions of A and A provide that if final completion of the work is delayed through no fault of the contractor, the owner shall pay the contractor in accordance with the payment terms of the contract. That exception is not contained in the version. Bernd Schlenther Senior Manager: I find the articles to be of a good quality and the topics are well researched and presented in a very user-friendly format. The new language in the versions strongly suggests that an owner is obliged to make payment where material delays occur through no fault of the contractor at any time during the project, not just after substantial completion.
Earlier this year, the AIA released its first update to the form contracts in 10 years. The AIA has added a paragraph to both form documents allowing for revisions to the contract documents that are consistent with the stated assumptions contained in the guaranteed maximum price or control estimate. AIA-A now includes a section regarding procurement of long-lead items.
As indicated above, AIA made other minor revisions to the Standard Form Agreements, and the list above is not comprehensive of all revisions. Although the architect still needs to be kept in the loop on any matter affecting the architect, this change should help prevent misunderstandings between an owner and a contractor about their respective expectations for a project.
AIA A Where the Basis of Payment is Stipulated Sum
Anyone attempting to conteact the form documents should carefully examine and compare the version with the form. There are a host of other changes to these and other versions of the AIA form construction contracts. If a contractor believes a minor change to the work that is ordered by the architect will affect the contract sum or time, the contractor must now notify the architect, and the contractor cannot proceed with the minor change until the issue is resolved.
Understanding these changes now can help contractors as they negotiate future construction contracts under the new forms.
Share Facebook Twitter Linked In. USA July 20 Please contact customerservices lexology. This new provision could help contractors get paid for delays sooner in the construction timeline. Under the new version, a contractor must give timely notice and propose alternatives if it considers the means and methods specified in the contract documents to be unsafe, without exception.
The contractor is required to notify aja owner and architect about any inconsistencies. As is the case with the AIA-A, the most significant change to the Standard Form Agreements is the creation of the insurance and bonds exhibit. If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries lexology.
The American Institute of Architects AIA publishes a variety of standard form construction contracts used throughout the industry.
Some of the substantive changes to the Standard Form Agreements are highlighted below:.