AIA Synopses

Documents and Services

Construction Documents Notes
1. General Concepts & Terminology
2. Conditions of Construction Documents
3. Projects Cost Estimates
4. Schedule Management
5. Delivery Methods
6. The Bidding Process
7. Construction Contract Administration
8. Coordination and Oversight
9. Construction Changes and Payments
10. Project Wrap-Up

Synopsis

“The General Conditions are an integral part of the contract for construction, in that they set forth the rights, responsibilities, and relationships of the owner, contractor, and architect. While not a party to the contract for construction between owner and contractor, the architect does participate in the preparation of the contract documents and performs certain duties and responsibilities described in detail in the general conditions. This document is typically adopted by reference into certain other AlA documents, such as owner-architect agreements, owner-contractor agreements, and contractor-subcontractor agreements. Thus, it is often called the “keystone” document.
Since conditions vary by locality and by project, supplementary conditions are usually added to amend or supplement portions of the General Conditions as required by the individual project. Review the model language provided in A511 as a guide in creating supplementary conditions for A201.”
-AIA Contract Synopses

Notes

The intent of these notes are to highlight particular portions in which I though were of importance. The notes do not cover all sections of the contract. Good luck and get studying!

1.0 GENERAL PROVISIONS

• Contract Documents-B141, A201, Specs, Addenda, Contract Modifications (ie. change orders, etc)
• Contract- Term used to represent the entire contract documents
• Work- Services and Construction required in Contract
• Project- Total construction of Work under the Contract
• Drawings- (I dont think I need to explain this one)
• Specifications- …portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services.
• Project Manual- …Volume assembled for the Work which may include the:
• Bidding requirements.
• Sample forms.
• Conditions of the Contract and.
• Specifications.
• Instruments of Service-
•  Drawings.
• Specifications and.
• Other documents created by the architect and architect’s consultants to provide their services. These documents, whether in printed or electronic form, cannot be separated from the services the architect provides through them. The architect and architect’s consultants retain copyright of these documents.

2.0 OWNER

The party contracting with the construction contractor.

• Requirements of the Owner

1. Give evidence of the owner’s ability to finance the project
2. Pay and secure for all documentations necessary for access, use and occupancy of site
3. Furnish survey and all data pertaining to the existing condition
4. To be prompt and cooperate with all parties
5. Provide copies of drawings

• Right to Stop Work- if contractor fails to correct work in accordance of Contract

• Right to Carry Out Work- if contractor fails to correct work in accordance of Contract, the architect’s approval is required.

3.0 CONTRACTOR

1. The person required to perform the Work required by the Contract
2. Review and report any errors or omissions to the architect promptly
3. Contractor is responsible for supervising and directing Work
4. Contractor is responsible for site safety
5. Provide construction schedule to Owner, and Architect
6. Provide a schedule of submittals, requires Architect’s approval
7. Mark all field changes

• Labor and Materials

1. Contractor to provide and pay for all services to execute Work
2. Substitution requires procedure in accordance with a Change Order (Owner, Architect approval)

• Permits, Fees and Notices

1. Contractor shall secure and pay for permits, inspections, etc.
2. Not responsible for Contract Docs to be in accordance of law and code

• Allowances- An accounting device with regard to materials and equipment whose selection and cost cannot be determined precisely at the time the original bid or proposal is submitted

• Shop Drawings, Product Data and Samples

1. Are not contract documents
2. Contractor shall review prior submittal to Architect
3. Responsible for field measurements and material check
4. Direct Architect’s attention to any revisions not by Architect

• Indemnification (this is a bit of legalese, I’ll show what the AIA commentary stated, but you should review the actual contract text in its entirety, see 3.18)

1. This subparagraph contains a narrow-form of indemnification, under which the indemnitor’s obligation only covers the indemnitee’s losses to the extent caused by the indemnitor or one for whose acts the indemnitor is responsible.

4.0 ADMINISTRATION OF THE CONTRACT

• Architect- An entity lawfully practicing architecture

1. Owner’s rep during construction until final payment, on occasion during one yr warranty after substantial completion
2. Communication coordinator, contact between Owner and Contractor to be through Architect
3. Review and certify payments to Contractor
4. Ability to reject work not conforming to contract documents
5. Review Contractor’s submittals
6. Prep Change Orders and Construction Change Directives
7. Inspection during Substantial Completion and Final Completion, forward all warranties to Owner
8. Render decisions on performance of either party

Claims and Disputes, Resolution, Mediation, and Arbitration
(These sections are too critical to summarize. I would strongly suggest you acquire the sample AIA contract and review this portion. This portion is extremely important, understanding dispute scenarios and resolutions. I realize this might seem like a “cop-out” on my part but its definitely for your benefit see 4.3 – 4.6 )

5.0 SUBCONTRACTORS

person or entity who contracted with the Contractor to perform a portion of the Work.

1. Contractor shall provide a list of subs to Owner and Architect
2. Owner and Architect allowed to have reasonable objection to any proposed entity
3. Substitution is allowed to result in change in contract time or cost

6.1 OWNER’S RIGHT TO PERFORM CONSTRUCTION AND HIRE

1. Owner shall coordinate the works of the separate contractor and the Work of the Contractor
2. Contractor required to cooperate

7.0 CHANGES IN THE WORK

1. Change can occur by Change Order, Change Directive or order for a Minor change in Work
2. Change Order shall be based on agreement among the Owner, Contractor and Architect
3. Construction Change Directive requires agreement between Owner and Architect
4. Minor changes can be issued by just the Architect

• Change Orders- A written instrument prepared by Architect and sign by all three parties agreeing to the scope, cost and time

• Construction Change Directives

1. A written instrument prepared by Architect and sign by just Owner and Architect agreeing to the extent of change (within general scope of contract), cost and time
2. Used in changes lacking in total agreement in terms
3. see 7.3.3 for adjustment to Contract Sum determination methods
4. Contractor must proceed with work, and as well inform Owner and Architect of his/her approval or disagreement (if approved, then the change will then be recorded as a Change Order)
5. Architect will determine method and adjustment for Contract Sum. (see 7.3.6 for detail break down)

• Minor Changes in the Work- Architect to have authority to issue minor changes that has no affect on Contract Sum or Contract Time

8.0 TIME

1. Contract Time is the duration for Substantial Completion of Work
2. Architect shall certify Substantial Completion date (note: no mention of cert for final completion)
3. Date of commencement to be stated on Agreement

• Delays and Extensions of Time- Factors of delay which are out of the Contractor’s control allow for justifiable extension via Change Order

9.0 PAYMENTS AND COMPLETION

• Contract Sum- Total amount to be paid by Owner to the Contractor for Work (variable from agreed adjustments)
• Schedule of Values- Cost allocated to portions of Work, to such a detail that the Architect will be able to use as a basis for future review of Applications for Payment
• Applications for Payment- A itemized form listing all performed Work. A proof for the right to payment. Payment shall also be for stored material or equipment approved by the Owner. Title to all Work performed passes to Owner at time of payment. All Work performed to be free and clear of liens and debt prior to payment.
• Certificate for Payment- Is proof of evaluation of Work and data by Architect, approving of quality and value (not proof of exhaustive inspection by Architect). Architect has seven days to respond after receiving Application for Payment. The Architect has the right to reject claim and withhold all or part of cert if he/she determines defective work, failure of payment to subs, and etc (see below).

1. defective work
2. claims filed on work
3. failure of payment to subs by Contractor
4. proof Work can not be completed with balance left in Contract Sum
5. damage to Owner
6. proof Work can not be completed within Contract Time
7. consistent failure of Work to meet Contract requirements

Other aspects of Cert for Payment

1. Owner required to pay Contractor after Certificate for Payment is issued
2. Cert for Payment does not constitute acceptance of defective Work
3. If payment is not made to the Contractor through no fault of his/her own, the Contractor is allowed to stop work without penalty till payment is received.

• Substantial Completion- The date the architect determines by establishing the point at which the work or a designated portion thereof can be occupied or used as intended. Usually the Contract initially proposed the date.

1. Punch List- A list of items that must be completed before the work is finally complete, submitted by the Contractor to the Architect
2. Substantial Completion Inspection- This is one of only two inspections by the architect. The other inspection takes place prior to final payment. This determines if the Work is completed to a point where Owner can occupy the premise. During this time the Architect may require additional work to let occupation occur, and reject request for Substantial Completion.
3. Certificate of Substantial Completion- Issued by the Architect will set the official date. It will list the remaining Work and the duration in which to finish. The responsibilities of insurance, maintenance and other factors will be determined between Owner and Contractor. Warranty also starts on this date.
4. Retainage- If any retainage is required it shall be released at this point, by the consent of the surety.

• Partial Occupation- The owner is allowed to occupy or use part of the work before it is substantially complete.
• Final Completion, Final Payment- Contractor will notify Architect of readiness for inspection, if accepted then final certificate of payment is issued (there is no Certificate of Final Payment).

1. Final Payment isnt due till: Contractor proves all payments have been made and no other forms of indebtedness is attached to Work; Insurance is still active till 30 day prior notice is given to Owner; Contractor to verify no issues with renewing insurance; Consent of Surety; The Owner may will require a bond indemnify the Owner against liens.
2. The owner waives all except the designated claims by making final payment to the contractor. Designated claims: Liens or any encumbrances unsettled; failure of Work to meet Contract requirements; terms of special warranties required by the Contract Documents (9.10.4.3)

10.0 SAFETY

• The Contractor to be responsible for safety programs and precautions on site in the performance of the Contract
• Responsible of safety of persons and property, and compliance of local law and code in that regard
• Create a point of contact for matters of safety
• If hazardous material is encountered, Contractor is to stop Work and report to Owner and Architect in writing
• Contractor to act immediately in his/her discretion to prevent threatened damage, injury or loss, in an emergency.

11.0 INSURANCE AND BONDS

• Contractor’s Liability Insurance- Covers anyone under employment directly or indirectly to the Contractor. In claims pertaining to: disability, bodily injury, personal injury, and property damage.

1. Certificates of Insurance- To be filed with Owner prior to starting Work. 30 day notice given to Owner prior to cancellation of insurance.

• Property Insurance

1. Owner to acquire Builder’s Risk (all-risk) type of policy, coverage includes everything but specifically excluded risk.s
2. If Owner does not intend to acquire such insurance, the contractor must be informed.
3. The insurance shall cover portions of Work stored off-site and in transit
4. Occupancy is be after receiving insurance or surety consent

• Boiler and Machinery Insurance- Covers equipment during installation until transfer of title to Owner
• Waivers of Subrogation- Subrogation is the right to “stand in the shoes” of another and to claim whatever rights the original person or entity had. It prevents the insurance company to sue either party to recover such losses (why have insurance if the insurance company can sue you? that’s what this is preventing).
• Performance Bond and Payment Bond- Owner has the right to require the Contractor to have those bonds. Contractor to provide proof of bonds to any potential beneficiary of bonds.

12.0 UNCOVERING AND CORRECTION OF WORK

• If a portion of Work is covered in spite of Architect’s direction and requirements of the Contract, Architect can direct the Contract to uncover said Work. The cost for all work is then Contractor’s responsibility, and no change in Contract Time is allowed.
• If If a portion of Work is covered and there was no specific instruction from the Architect and the Contract, then the Architect is still allowed to requests the Contractor to uncover Work for examination. If Work is in line with the Contract then the costs will be the Owner’s responsibility. If Work is not in line with Contract, then the cost shall be the Contractor’s responsibility.
• Correction of Work rejected by the Architect is the responsibility of the Contractor, and at his/her expense
• One year period of correction of Work after substantial completion
• If Owner accepts defective Work, the Contract Sum may be adjusted to match (change order required)

13.0 MISCELLANEOUS

• Where the Project is located determines the law and code
• Owner can assign Contract to institutional lender, without consent of Contractor
• Tests and Inspections- Owner to assume costs. If testing show failure of Work to conform to Contract Documents, then Contractor to assume all cost associated with correction and testing.

14.0 TERMINATION OR SUSPENSION OF THE CONTRACT

• Termination by Contractor- if work is stop by 30 consecutive days, through no fault of the Contractor

1. Court order stoppage
2. National emergency
3. Architect has not issued Certificate of Payment and not stated reason
4. Owner has not made payment in stated time
5. Owner has not furnished evidence of finance

• Termination by Owner

1. If the Contractor: fails to provide proper skilled workers or materials; fails to pay subcontractors; disregard of law and codes; and breach of Contract Documents
2. The Owner can after certification by the Architect, and notice to Contractor and their surety: take possession of the site and all material and tools of the Contractor; accept existing subcontracts; and finish Work by whatever methods, and provide the Contractor an account of costs from finishing Work.
3. Convenience- The Owner can terminate the Contract at any point without cause. Contractor will be entitled to all Work performed, any cost associated from termination; and overheard and profit on Work not performed.

• Suspension by Owner

1. Convenience- At anytime Owner can stop Work, without reason. Contract Time and Contract Sum to be adjusted for increased time and cost caused by suspension of Work.