AIA A101-2007 and A201-2007 DocumentsAssociation of Construction and Development
December 13, 2012 — 2,234 views
The American Institute of Architects, or AIA, developed and continues to construction contracts. These agreements have become standard documents for the construction industry. The first is known as AIA A101-2007. It is a standard contract for use by an owner and contractor on a project where is the price is stipulated or fixed. The other document, AIA A201-2007, is known as General Conditions of the Contract for Construction. It is generally incorporated by reference into an A101-2007 contract.
Article 1 of the AIA A101-2007 specifies what documents constitute the contract. Every attachment and document that is incorporated into the contract, like the AIA A201-2007, is listed. The contract then goes to state that these documents represent the entire agreement between the owner and contractor. This is an important provision as many oral statements are made by both sides prior to executing the contract. This provision makes it clear that unless those oral statements are written down and specifically made part of the A101, then neither party is bound by those statements.
Article 3 outlines the time deadline for the contractor to reach the contract term of substantial completion. Liquidated damage penalties are spelled out which usually consists of a daily penalty for missing the deadline.
Article 4 outlines the price and how it is figured, including allowances for certain items. Article 5 sets up a payment schedule which allows the contractor to be paid as the project progresses, subject to meeting certain goals. This is a key provision and great care should be made in drafting these terms so there is no dispute as to how and when the contractor is paid during construction.
Article 6 outlines the procedure to resolve disputes which can include dispute resolution and arbitration prior to any court action. The remainder of the contract outlines how the contract can be terminated by either party, and miscellaneous provisions including the contractor’s responsibility to purchase and maintain insurance and bonds.
AIA A201-2007 is a lengthy document over 50 pages which provide standard terms for common problems, including recent revisions concerning electronic data and discovery of wetlands during construction. A new revision makes the contractor liable for any damage caused by hazardous materials brought to the construction site, including holding the owner harmless from any action by a third party.
These contracts cover every aspect of construction and set for the liability of each party during all phases of construction.