Another decade has passed, so it’s that time again:  the American Institute of Architects (AIA) has released its newest set of contracts for the design-bid-build delivery model of construction.  Updates have been made to a number of the AIA forms, including the A101, A201, and A401.  We will provide a more detailed analysis of the changes in subsequent posts, but here are the highlights in the revisions:

1. The new agreements contain a new provision in the section on termination for convenience by the owner that provides for a fee to be paid to the terminated party.
2. The design portions of the agreements now differentiate between “supplemental services”, which are out of the ordinary and included at the time of contract formation, and “additional services”, which are the functional equivalent of change orders.
3. There is an expanded section on insurance and bonds that allow for the attachment of the preferred forms.
4. A new provision relating to direct communications between the owner and contractor (as opposed to through the architect) is included.
5. Simplified payment provisions.

As with prior updates, it will take time for industry personnel to digest the form and start using them on projects.  It’s also not unusual for the industry to adopt some changes in their entirety and reject others.  Whatever the case, care should be taken to analyze the risks of your particular project and determine whether an AIA form, a modified AIA form, or some other contract form is appropriate to manage risk for your work.

If you have any questions on this or other construction issues, please contact me.

ABOUT JOSHUA QUINTER

jquinter@offitkurman.com |484.531.1701

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