This document may be used with a variety of compensation methods, including percentage of construction cost and stipulated sum. B— is not a stand-alone document and to become effective it must be incorporated into an owner-architect agreement. Related documents. Changes from the previous edition.
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Eighteen months from the date AIA published the document, the license to use the current edition will terminate. This is not a major revision. Sustainable project services can be added as a Supplemental Service under Section 4. This exhibit eliminates the need to have a sustainable project version of each contract document. To make it easier to follow the changes we quote the contract language, put a strike-out line through wording that has been deleted from the Agreement, and underline wording that has been added.
Following the quoted text, we provide comments on that provision. Article 1 — Initial Information for the Project This is almost entirely new. One reason given for including this information directly in the agreement, instead of what was previously an exhibit, is that it will be front and center and will result in more individuals actually reading the information and becoming knowledgeable about the content.
This serves the purpose of improving upon communication, which is certainly a vital element of good risk management and project management.
The Architect represents that it is properly licensed in the jurisdiction where the Project is located to provide the services required by this Agreement, or shall cause such services to be performed by appropriately licensed design professionals.
In order to provide architectural services in a given state, a firm must generally be licensed in that state. An unlicensed firm cannot generally meet the state licensing requirements merely by having licensed individuals perform the services. This wording likely anticipates a situation where the architect is indeed licensed to perform architectural services, but is also subcontracting to various engineering firms to provide engineering services that the architect itself is not licensed to perform.
If any of the requirements set forth below exceed are in addition to the types and limits the Architect normally maintains, the Owner shall reimburse pay the Architect for any additional cost: as set forth in Section Substantial Completion, however, is a defined and objective point in time, and that in turn sets the end date for maintaining insurance.
Comment 2: At article Comment 3: Section 2. The section is sufficiently descriptive that once the blanks are filled in with the desired coverage amounts, it might be deemed adequate by some firms without further addition of an insurance attachment. However, the attachment will be useful for providing more detailed requirements specific to the project or contract. Of particular note are the following new insurance subsections: 2.
The excess policy shall not require the exhaustion of the underlying limits only through the actual payment of the underling insurers. Not all additional insured endorsements that are readily available from carriers include completed operations.
This means the Architect and insurance broker will need to pay special attention to the language contained in their additional insured endorsements to determine that the requirements of the contract are being met. The Architect shall provide prompt written notice to the owner if the Architect becomes aware of any error, omission, or inconsistency in such services or information. It may also protect against an argument that the Architect should have otherwise determined that the necessary information was provided in a timely manner by the owner.
The new language also makes clear that the architect takes no responsibility for the completeness or accuracy of that information provided by the owner or others retained by the owner. Comment 2: Only written acceptance is deemed adequate to constitute acceptance. The Architect shall reach an understanding with the Owner regarding the requirements of the Project.
Comment: The addition of the reference to section 6. Note that this same requirement to update the estimate for the Cost of Work prepared in accordance with Section 6.
Construction Phase Services 3. Note that later in the contract there is another section that again makes reference to performance criteria. Since that section already addresses the use of performance specifications, it does not seem necessary to include it here in section 3.
A similar change is made for negotiated procurement in section 3. But even before this addition, Architects were routinely providing this service anyway. In addition to making the paragraph clunky, this could draw more attention to the benefit that the Architect had already been receiving under the existing contract language. The Architect shall be entitled to rely upon, and shall not be responsible for, the adequacy, and accuracy and completeness of the services, certifications, and approvals performed or provided by such design professionals.
This was the same understanding under the edition of this section. But to the extent there was any question about it, this new language should certainly prevent a court from imposing greater responsibility or liability on the Architect than intended by the Agreement.
This avoids the potential for having someone argue that the certification is a warranty. It is advisable that the Architect use this same type of language for other types of certifications as well. Article 4 — Supplemental and Additional Services 4. Unless otherwise specifically addressed in this Agreement, if neither the Owner nor the Architect is designated, the parties agree that the listed Supplemental Service is not being provided for the Project.
Insert a description of the Supplemental Services in Section The latter are not included in Basic Services, but the parties at time of contracting recognize that Supplemental Services will be required for the project. Additional Services are those services that may be added later as the need arises. This article 4. Section 4. Those services now have been moved up to section 4. An example: a Fire Marshal who interprets the fire code requirements in a manner contrary to the requirements generally understood to apply by a design professional when exercising the generally accepted standard of care.
It is one thing to have to make changes because codes change after contract award. It is quite another to have to make changes because a code official interprets the code differently than the reasonable interpretation of the design professional who exercised the appropriate standard of care.
This new provision addresses that problem. The final sentence added to this paragraph requires that the Owner have no direct communications with subconsultants but instead always communicates through the Architect. Article 6 — Cost of Work 6. The Cost of the Work also includes the reasonable value of labor, materials, and equipment, donated to or otherwise furnished by, the Owner. The Cost of the Work does not include the compensation of the Architect, Architect.
If the Owner requests detailed cost estimating services, the Architect shall provide such services as an Additional Service under Article 4. This change cures that problem. This change corrects a problem that arose in litigation where Owners that fired their architect and then gave the Instruments of Service to a follow-on architect were arguing that even if the original Architect had not been paid, the license to the Instruments of Service was already granted and could not be rescinded.
They were successfully arguing that the Architect could not sue for copyright infringement against either the Owner or new Architect.
This new language clarifies that the Owner gets no rights to the Instruments of Service until the Architect has been paid. This is a powerful clause. Article 9 — Termination or Suspension 9. In addition to any amounts paid under Section 9. Paying anticipated profits are rarely, if ever, included as part of termination for convenience settlements.
In fact, one vital purpose of a normal termination for convenience clause is to relieve the Owner of having to pay anticipated profits in the event that the project needs to be cancelled or the contract otherwise needs to be terminated. It has, therefore, been deleted where it used to appear at article Article 10 — Miscellaneous Provisions This new language resolves that issue.
This Section The receiving party may also disclose such information to its employees, consultants, or contractors in order to perform services or work solely and exclusively for the Project, provided those employees, consultants and contractors are subject to the restrictions on the disclosure and use of such information as set forth in this section There have been instances where project owners forbid the architect from disclosing confidential information for example, the discovery of ongoing pollution even where state law or regulations required the Architect to report it a regulatory agency.
This provision permits the Architect to report confidential information as legally required even if the Owner does not want it reported. The seven-day advance notice requirement, however, is a reasonable compromise that will enable the client to consider what options it may have to legally object to the disclosure.
Or, if the disclosure is being done pursuant to response to a subpoena, the provision gives the Owner an opportunity to attempt to quash the subpoena If it is determined that any provision of the Agreement violates any law, or is otherwise invalid or unenforceable, then that provision shall be revised to the extent necessary to make that provision legal and enforceable. It means that if a court finds a provision of the Agreement to be void or unenforceable, the court is to nevertheless enforce the balance of the terms and conditions of the Agreement.
Article 11 — Compensation If the types and limits of coverage required in Section 2. He is founder and president of ConstructionRisk, LLC, which provides consulting services to owners, design professionals, contractors and attorneys on construction projects; risk management advice concerning insurance coverage; and guidance to those procuring insurance. Holland publishes an online construction risk management library ConstructionRisk.
AIA B101™ – 2017 Owner-Architect Agreement, What Has Changed Since 2007?
Eighteen months from the date AIA published the document, the license to use the current edition will terminate. This is not a major revision. Sustainable project services can be added as a Supplemental Service under Section 4. This exhibit eliminates the need to have a sustainable project version of each contract document. To make it easier to follow the changes we quote the contract language, put a strike-out line through wording that has been deleted from the Agreement, and underline wording that has been added. Following the quoted text, we provide comments on that provision.
All rights reserved. Copyright Law and International Treaties. User Notes: Error! Unknown document property name. See Exhibit A — Initial Information 1. Any such adjustments will occur only in the 1.
2017 AIA Contract Documents now available
Working with architects, contractors, subcontractors and owners, the AIA Documents Committee updates this core set of documents every 10 years. We hope that all industry participants take advantage of the significant written resources and education programming opportunities available to learn about, and understand, the revisions and the full portfolio of AIA Contract Documents. Visit www. Comparative versions showing the differences between the and editions are also available at www. Prepared by the AIA with the consensus of owners, contractors, attorneys, architects, engineers, and others, the documents have been finely tuned during their year history. As a result, these comprehensive contracts and forms are now widely recognized as the industry standard.