Construction Contracts with Private Owners

Common Contract Documents Used• AIA Documents• AGC Documents• EJCDC Documents

Standardized Forms

Issued by industry and professional associations and governmental agencies for use in private and public projects.

The most commonly used ones are prepared by:

AGC - Associated General Contractors of America

AIA - American Institute of Architects

ASCE - American Society of Civil Engineers

CEC - Consulting Engineers Council

EDA - Economical Development Association

EPA - Environmental Protection Agency

FHA Farmers Home Administration

HUD - Housing and Urban Development

Standardized Formscontinued

JPL - Jet Propulsion Laboratory

NASA - National Aeronautics and Space Administration

NAVFAC- Naval Facilities Engineering Command

NSPE - National Society of Professional Engineers

SCS - Soil Conservation Service

USBR - US Bureau of Reclamation

USCE - US Army Corps of Engineers

(joint) - Contract Documents for Federally-assisted Water and Sewer Projects EDA; EPA; FHA; HUD; ACEC; APWA; ASCE; AGC; NSPE; NUCA

AIA Document A201

General Conditions of the Contract for Construction

1999 Edition This document has been

approved and endorsed by the Associated General Contractors of America

Used in private work Entire document is in text.

READ EVERY WORD!

AIA A201Articles, 1999

1. General Provisions

2. Owner

3. Contractor

4. Administration of the

Contract

5. Subcontractors

6 Construction by Owner or by

Separate Contractors

7. Changes in the Work

8. Time

AIA A201Articles, 1999

9. Payments and Completion

10. Protection of Persons & Property

11. Insurance & Bonds

12. Uncovering & Correction of

Work

13. Miscellaneous Provisions

14. Termination or Suspension

of the Contract

Article 1 General Provisions

CONTRACT DOCUMENTS CONSIST OF: Agreement between

Owner and Contractor Conditions of the Contract

General, Supplementary & other

Conditions Drawings Specifications Addenda issued prior to

execution of the Contract Other documents listed in the

Agreement and Modifications issued after execution of the Contract

A Modification is:

A written amendment to the Contract signed by both parties

Change Order Construction Change

Directive

or A minor change in the work

issued by the Architect.

The Contract Documents

Shall not benot be construed to create a contractual relationship:• Between the Architect &

Contractor• Between the Owner & a

Subcontractor or Sub-subcontractor

• Between any persons or entities other than the

Owner and Contractor

Article 2 Owner

The Owner shall furnish the Contractor reasonable evidence that financial arrangements have been made

Surveys’ describing physical characteristics, legal limitations and utility locations

Information or services under the Owner’s control

Article 3 Contractor

The Contractor shall pay

• Sales taxes

• Consumer use taxes

• And similar taxes

The Contractor will not perform work to be

contrary to:

Laws Statutes Ordinances Building codes, rules,

regulations The Contractor shall

employ a competent superintendent

The Contractor shall

Review, approve & submit to the architect shop drawings, product data, samples and similar submittals required by the contract

Provide the owner and architect accesses to the work

Indemnification

The Contractor shall indemnify and hold harmless the Owner, Architect, Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work

Article 4 Administration of The Contract

The architect will provide administration of the contract • During construction until final payment is

due

• Advise and consult with the owner and visit the site

• Make inspections to check quality or quantity of work

• Keep the owner informed of progress

• Guard against defects and deficiencies

• Review and certify the amounts due the contractor

• Issue certificates for payment

• Have authority to reject work and approve contractor’s submittals

• Prepare change orders and directives, and may authorize minor changes

Architect Will Review Claims

Take actions within ten days: • Request additional supporting

data• Submit schedule• Reject the claim in whole or in

part, stating reasons for rejection

• Recommend approval of the Claim

• Suggest a compromise

Arbitration

In accordance with the Rules of American Arbitration Association

The award rendered by the arbitrator shall be final

Article 5 Subcontractors

The Contractor shall not

• contract with a proposed person whom the owner or Architect has made reasonable and timely objection

• be required to contract with anyone whom the Contractor has made reasonable objection

Subcontractors

The Contractor shall not contract with a proposed person whom the owner or Architect has made reasonable and timely objection

Be required to contract with anyone whom the Contractor has made reasonable objection

Article 6Construction By Owner

Or Separate Contract

Use owner’s workforce Separate contract new

company Owner provides

coordination Owners right to clean up

and to charge the contractors

Article 7 Change In Work

May be accomplished by:

Change order

Change directive

Minor change order

Change Orders

A Change Order is a written instrument prepared by the Architect and signed by the Owner, Contractor and Architect, stating their agreement upon all of the following:

Change in the Work Change in the Contract Sum Change the Contract Time

Construction Change Directives

A written order prepared by the Architect and signed by the Owner

Directing a change in the Work

Shall be used in the absence of total agreement on the terms of a Change Order

Change Order is based upon agreement among the Owner, Contractor and Architect

Minor Changes In The Work

Architect will have authority to

order minor changes in the

Work

Not involving adjustment in the

Contract Sum or extension of

the time

Such changes shall be effected

by written order and shall be

binding

Article 8 Time

Contract Time is the period of time

for Substantial Completion

The date of commencement of the

work is the date established in the

agreement

The term day as used in the Contract

documents shall mean calendar day

Article 9 Payments & Completion

Schedule of values Applications for payment Certificates for payment Decisions to withhold

certification Progress payments Failure of payment Substantial completion Partial occupancy or use Final completion and final

payment

Article 10Prot of Persons &Property

Safety Programs

Contractor shall take reasonable precautions

Hazardous materials

Emergencies

Article 11

Insurance & Bonds

Protects Contractor from claims or

damage Under workmen’s compensation Because of bodily injury, sickness, or death of

the Contractor’s employees Same for any person other than the

Contractor’s employees Insured by usual personal injury liability

coverage Other than to the Work itself because of injury

to or destruction of tangible property Because of bodily injury death of a person or

property damage arising from use of a motor vehicle and

Liability insurance applicable to the Contractor’s obligations under indemnification

Certificates Of Insurance

Acceptable to the Owner shall be filed with the Owner prior to commencement of the work

Certificates will not be cancelled until at least 30 days’ prior written notice has been given to the Owner

Owner’s Liability Insurance

The Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance

Property Insurance

The Owner shall purchase property insurance

This insurance shall include interests of the Owner, the Contractor, Subcontractors and Sub-subcontractors

Property insurance shall be on an all-risk policy form and shall insure against “The perils of fire physical loss or damage including theft, vandalism malicious mischief, collapse, falsework, temporary buildings and debris removal including demolition”

Waivers of Subrogation

The Owner and Contractor waive all rights against each other and

Any of their subcontractors, sub-subcontractors, agents and employees, each of the other, and

The Architect, Architect’s consultants, separate contractors

And any of their subcontractors, sub-subcontractors

Performance & Payment Bonds

Thc Owner shall have the right to require the Contractor to furnish bonds covering faithful performance

Article 12Uncovering & Correction

of Work

Uncovering work for Architect’s examination• Who pays• Conditions

Corrections• Before or after

Substantial Completion Acceptance of

nonconforming work

Article 13 Miscellaneous Provisions

Governing law Successors and assigns Written notice Rights and remedies Acceptance of

nonconforming work Tests and inspections Interest

Article 14 Termination Or Suspension

of the Contract

Contractor may terminate the Contract if:

A court or other public authority having

jurisdiction orders it

An act of government, such as a

declaration of national emergency

Architect has not issued a Certificate for

Payment

If repeated suspensions, delays or

interruptions by the Owner

Owner has failed to furnish to the

Contractor promptly reasonable evidence

of financing.

Termination By The Owner for Cause

The Owner may terminate the Contract

if the Contractor: Persistently refuses to

supply enough properly skilled workers

or proper materials

Fails to make payment to

Subcontractors for materials or

Persistently disregards laws,

ordinances, or rules, regulations or

orders of a public authority

Otherwise is guilty of substantial breach

of a provision of the Contract

Documents

Suspension By The Owner For Convenience

The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work