The American Institute of Architects (AIA) recently released revised versions of its form agreements. These agreements are considered the standard contracts for managing the relationships and transactions involved in construction projects. The A201-2017 form, General Conditions of the Contract for Construction, includes updates to the following provisions:
- Insurance and Bonds Exhibit: The A201 forms now include a separate exhibit so that the parties can specify the project’s insurance requirements. This revision allows for increased flexibility and expansion by differentiating between required and optional coverages.
- Communication between Owner and Contractor: Direct communication between the owner and contractor no longer has to go through the project architect.
- Electronic Transmission: Notices may now be submitted electronically, although notice of claims must still be sent in person or through certified/registered mail.
- Termination Fee: Contractors and owners may now select the option of agreeing to a termination fee.
Owner’s Financial Agreements: The contractor has better access to the owner’s financials prior to the start of the project, and may stop or suspend work if the owner does not disclose their financial information in a timely manner.