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July 22, 2008

6 Changes in the AIA's New Contract Forms

Digital Projects. The A201-2007 replaces the Project Manual with "Instruments of Service" that can be generated "in any medium."  Because the new documents do not allocate risks associated with using Building Information Modeling (BIM) or other electronic data, adding custom terms when digital protocols are used is probably a good idea.

Owner's Financials Off Limits?  Yes – if you're not careful.  With few exceptions, the A201-2007 requires the contractor to request financial disclosures from the owner before commencement of the work.

Green Design and Construction.  Architects are required to consider the project's impact on the environment during the schematic design phase.  This does not mean that green elements are required. Again, because there is no risk allocation for unique green design and construction issues, custom provisions should be added to the AIA documents if green requirements are included.

Dispute Resolution.  Litigation has replaced arbitration as the default dispute resolution format.  Also, claims and disputes are decided by a designated "Initial Decision Maker" instead of the architect.

Additional Insureds.  Contractors are now required to name the architect and its consultants as additional insureds.

Progress Payments.  The contractor must make progress payments to subs within 7 days of payment by the owner (no longer undefined "prompt" payments).

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