Instructions: A134-2019

Submitted by krischen@aia.org on Wed, 11/13/2019 - 21:39
Body
{"version":"0.3.0","atoms":[],"cards":[],"markups":[["strong"],["b"],["a",["href","http:\/\/www.adr.org"]]],"sections":[[1,"p",[[0,[0],1,"Purpose"]]],[1,"p",[[0,[],0,"AIA Document A134\u2122\u20132019 is a standard form of agreement between Owner and Construction Manager and is intended for use on construction management projects where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price, and the cost is not fully known at the commencement of construction. This document is intended for use on construction projects where a Construction Manager, in addition to acting as an advisor to the Owner during the preconstruction phase, also provides construction of the project, but does not provide a guarantee of cost. Do not use this document if the Construction Manager will be providing a guarantee of cost (use AIA Document A133\u2122\u20132019 for projects where a guaranteed maximum price will be provided). The Construction Manager\u2019s services under this document are divided into two phases: the Preconstruction Phase and the Construction Phase, portions of which may proceed concurrently. A134-2019 also includes an Insurance and Bonds Exhibit (Exhibit A), which is a critical part of the agreement, and should be discussed with legal and insurance counsel."]]],[1,"p",[[0,[0],1,"Related Documents"]]],[1,"p",[[0,[],0,"AIA Document A134\u20132019 is intended for use in conjunction with the following documents: "]]],[1,"p",[[0,[],0,"AIA Document A201\u2122\u20132017, General Conditions of the Contract for Construction. NOTE: As stated in Section 2.3 of this document, A201\u20132017 is adopted only to a limited extent for Preconstruction Phase services, whereas during Construction Phase services, A201\u20132017 is generally incorporated into this document, unless specific exceptions are made in this document or by amendment to this Agreement."]]],[1,"p",[[0,[],0,"AIA Document B133\u2122\u20132019, Standard Form of Agreement Between Owner and Architect, Construction Manager as Constructor Edition."]]],[1,"p",[[0,[0],1,"Insurance and Bonds"]]],[1,"p",[[0,[],0,"Unlike previous editions of AIA Document A134, which included a fill point to list the types and limits of insurance, and AIA Document A201, which listed general contractual terms regarding insurance, insurance terms relating to the type and amount of coverage have been removed from AIA Document A134\u20132019 and A201\u20132017 and have been included in AIA Document A134\u2122\u20132019, Standard Form of Agreement Between Owner and Construction Manager where the basis of payment is the Cost of the Work plus a Fee without a Guaranteed Maximum Price, Exhibit A, Insurance and Bonds. This insurance and bonds exhibit forms an integral part of AIA Document A134\u20132019 and allows the parties to establish key insurance terms related to the Project. Failure to use AIA Document A134\u20132019 Exhibit A could result in the parties having little or no insurance coverage to respond to a loss or third party claim related to the Project. The AIA encourages you to discuss AIA Document A134\u20132019 Exhibit A, along with Article 11 of AIA Document A201\u20132017, with your insurance broker and legal counsel so that insurance appropriate to your company and Project can be put in place before the start of construction."]]],[1,"p",[[0,[0],1,"Dispute Resolution\u2014Mediation and Arbitration"]]],[1,"p",[[0,[],0,"Through its adoption by reference of AIA Document A201\u20132017, AIA Document A134\u20132019 contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process, but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act."]]],[1,"p",[[0,[],0,"The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, call the American Arbitration Association at (800) 778-7879, or visit their Web site at www.adr.org."]]],[1,"h2",[[0,[1],1,"USING A134\u20132019"]]],[1,"p",[[0,[1],1,"Modifications"]]],[1,"p",[[0,[],0,"Particularly with respect to professional or\ncontractor licensing laws, building codes, taxes, monetary and interest\ncharges, arbitration, indemnification, format and font size, AIA Contract\nDocuments may require modification to comply with state or local laws. Users\nare encouraged to consult an attorney before completing or modifying a\ndocument."]]],[1,"p",[[0,[],0,"In a purchased paper AIA Contract Document,\nnecessary modifications may be accomplished by writing or typing the\nappropriate terms in the blank spaces provided on the document, or by attaching\nSupplementary Conditions, special conditions or referenced amendments."]]],[1,"p",[[0,[],0,"Modifications directly to purchased paper AIA\nContract Documents may also be achieved by striking out language. However, care\nmust be taken in making these kinds of deletions. Under NO circumstances should\nstandard language be struck out to render it illegible. For example, users\nshould not apply blocking tape, correction fluid or Xs that would completely\nobscure text. Such practices may raise suspicion of fraudulent concealment, or\nsuggest that the completed and signed document has been tampered with. Both\nparties should initial handwritten changes."]]],[1,"p",[[0,[],0,"Using AIA software, modifications to insert\ninformation and revise the standard AIA text may be made as the software\npermits."]]],[1,"p",[[0,[],0,"By reviewing properly made modifications to a\nstandard AIA Contract Document, parties familiar with that document can quickly\nunderstand the essence of the proposed relationship. Commercial exchanges are\ngreatly simplified and expedited, good faith dealing is encouraged, and\notherwise latent clauses are exposed for scrutiny."]]],[1,"p",[[0,[],0,"AIA Contract Documents may not be retyped or\nelectronically scanned. Retyping can introduce typographic errors and cloud\nlegal interpretation given to a standard clause. Furthermore, retyping and\nelectronic scanning are not permitted under the user\u2019s limited license for use\nof the document, constitute the creation of a derivative work and violate the\nAIA\u2019s copyright."]]],[1,"p",[[0,[1],1,"Cover Page"]]],[1,"p",[[0,[1],1,"Date."],[0,[],0," The date represents the\ndate the Agreement becomes effective. It may be the date that an oral agreement\nwas reached, the date the Agreement was originally submitted to the other\nparty, the date authorizing action was taken or the date of actual execution. "]]],[1,"p",[[0,[1],1,"Parties."],[0,[],0," Parties to this\nAgreement should be identified using the full address and legal name under\nwhich the Agreement is to be executed, including a designation of the legal\nstatus of both parties (sole proprietorship, partnership, joint venture, unincorporated\nassociation, limited partnership or corporation [general, limited liability,\nclosed or professional], etc.). Where appropriate, a copy of the resolution\nauthorizing the individual to act on behalf of the firm or entity should be\nattached. Other information may be added, such as telephone numbers and\nelectronic addresses."]]],[1,"p",[[0,[1],1,"Project."],[0,[],0," The proposed Project\nshould be described in sufficient detail to identify (1) the official name or\ntitle of the facility; (2) the location of the site, if known; (3) the proposed\nbuilding usage; and (4) the size, capacity or scope of the Project, if known."]]],[1,"p",[[0,[1],1,"Architect."],[0,[],0," As in the other\nAIA Contract Documents, the Architect\u2019s full legal or corporate title should be\nused."]]],[1,"p",[[0,[1],1,"Article 1 Initial Information"]]],[1,"p",[[0,[1],0,"\u00a7 1.1"],[0,[],1," "],[0,[],0,"Initial Information is provided\nin Section 1.1. The parties should take care to be as explicit and detailed as\npossible with respect to the relevant Initial Information."]]],[1,"p",[[0,[1],1,"\u00a7 1.1.4"],[0,[],0," The parties must set forth the\nOwner\u2019s anticipated design and construction milestone dates, as those dates are\nto be incorporated into the Construction Manager\u2019s initial schedule. "]]],[1,"p",[[0,[1],0,"\u00a71.1.6"],[0,[],1," "],[0,[],0,"If the Owner has\na Sustainable Objective for the Project, provide a description in the fill\npoint."]]],[1,"p",[[0,[1],0,"\u00a71.1.8"],[0,[],1," "],[0,[],0,"Identify the\nOwner\u2019s representative and indicate how that person may be contacted."]]],[1,"p",[[0,[1],1,"\u00a7 1.1.10"],[0,[],0," The AIA publishes standard form\nOwner-Consultant Agreements, including C103\u2122\u20132015, Standard Form of Agreement\nBetween Owner and Consultant without a Predefined Scope of Consultant\u2019s\nServices, which sets the terms and conditions governing the relationship\nbetween the Owner and its Consultant. C103\u20132015 does not include a scope of\nservices and must be paired with another document providing a description of\nthe required services. The AIA publishes several consultant\u2019s scope of services\ndocuments, including AIA Documents C201\u2122\u20132015, Standard Form of Consultant\u2019s\nServices: Land Survey, C202\u2122\u20132015, Standard Form of Consultant\u2019s Services:\nGeotechnical Engineering, and C203\u2122-2017, Standard Form of Consultant\u2019s\nServices: Commissioning."]]],[1,"p",[[0,[1],0,"\u00a71.1.12"],[0,[],1," "],[0,[],0,"Identify the\nConstruction Manager\u2019s representative and indicate how that person may be\ncontacted."]]],[1,"p",[[0,[1],0,"\u00a7 1.1.13"],[0,[],1,"\n"],[0,[],0,"Any\nOwner-specific requirements for the Construction Manager\u2019s staffing plan for\nPreconstruction Services should be provided here. "]]],[1,"p",[[0,[1],0,"\u00a7 1.1.14"],[0,[],1,"\n"],[0,[],0,"Owner-specific\nrequirements for subcontractor procurement should be listed here. "]]],[1,"p",[[0,[1],1,"Article 2 General Provisions"]]],[1,"p",[[0,[1],1,"\u00a7 2.2 Relationship of the\nParties"]]],[1,"p",[[0,[],0,"In a contract using a stipulated sum for the Construction\nManager\u2019s compensation, the Owner has agreed to pay a specific amount\nregardless of the cost incurred by the Construction Manager in the performance\nof the Work. However, when the Construction Manager\u2019s compensation is based on\nCost of the Work, as in this Agreement, the amount expended by the Construction\nManager as a \u201cCost of the Work\u201d has a direct economic consequence to the Owner.\nTherefore, the Owner has a heightened interest in the efficient and economical\nperformance by the Construction Manager, and the Construction Manager has a\nconsequent responsibility to manage expenditures on the Project in keeping with\nthe Owner\u2019s interests. This provision addresses those particular interests of\nthe Owner in a cost plus contract, and the corollary obligations of the\nConstruction Manager. "]]],[1,"p",[[0,[1],1,"Article 3 Construction\nManager\u2019s Responsibilities"]]],[1,"p",[[0,[1],0,"\u00a7 3.1.14 Other\nPreconstruction Services"],[0,[],1,"\n"],[0,[],0,"Insert\na description of any other Preconstruction Services to be provided by the\nConstruction Manager, such as providing cash flow projections, development of a\nproject information management system, early selection or procurement of\nsubcontractors, etc., or reference an attached exhibit that provides a\ndescription. "]]],[1,"p",[[0,[1],1,"\u00a7 3.3.1.3. Substantial\nCompletion"]]],[1,"p",[[0,[1],0,"\u00a7 3.3.1.3.1"],[0,[],1," "],[0,[],0,"Select the appropriate box and insert the date or number of\ndays as appropriate. "]]],[1,"p",[[0,[1],1,"Article 5 Compensation and Payments for\nPreconstruction Phase Services"]]],[1,"p",[[0,[1],0,"\u00a7 5.1.1"],[0,[],1," "],[0,[],0,"Sample language is provided below\nfor describing three methods of computing compensation."]]],[1,"p",[[0,[],0,"Stipulated Sum:"]]],[1,"p",[[0,[],0,"Compensation\nshall be the stipulated sum of ________ ($__), plus the following reimbursable\ncost items:"]]],[1,"p",[[0,[],0,"Multiple of\nDirect Personnel Expense:"]]],[1,"p",[[0,[],0,"Compensation\nshall based on a multiple of ______ (__) times Direct Personnel Expense of\nConstruction Manager\u2019s personnel, plus the following reimbursable cost items:"]]],[1,"p",[[0,[],0,"Actual Cost:"]]],[1,"p",[[0,[],0,"Compensation\nshall be based on actual costs incurred in the performance of the\nPreconstruction Phase services. (A maximum cost may be established.)"]]],[1,"p",[[0,[1],0,"\u00a7 5.1.3"],[0,[],1," "],[0,[],0,"Insert the\nnumber of months beyond which the Construction Manager\u2019s Preconstruction Phase\ncompensation shall be adjusted."]]],[1,"p",[[0,[1],0,"\u00a7 5.2.2"],[0,[],1," "],[0,[],0,"Insert the number of days within\nwhich payment is due after the receipt of the Construction Manager\u2019s invoice by\nthe Owner. If the rate of interest on late payments is to be different from the\nlegal rate, insert the agreed upon rate of interest."]]],[1,"p",[[0,[1],1,"Article 6 Compensation for Construction Phase Services"]]],[1,"p",[[0,[1],1,"\u00a7 6.1.2"],[0,[],0," Enter the method used for\ndetermining the Construction Manager\u2019s Fee (lump sum, percentage of Cost of the\nWork or other method)."]]],[1,"p",[[0,[1],1,"\u00a7 6.1.3"],[0,[],0," Explain how the Construction\nManager\u2019s Fee will be adjusted for changes in the Work."]]],[1,"p",[[0,[1],1,"\u00a7 6.1.4"],[0,[],0," If there will be a limitation placed\non Subcontractors\u2019 overhead and profit, enter the amount or explain how the\nlimitation will be calculated."]]],[1,"p",[[0,[1],1,"\u00a7 6.1.5"],[0,[],0," Enter the percentage cap that\nwill be used to determine the rental rates for Construction Manager-owned\nequipment."]]],[1,"p",[[0,[1],1,"\u00a7 6.1.6"],[0,[],0," Identify unit prices and state\nquantity limitations, if any, to which the unit price will be applicable."]]],[1,"p",[[0,[1],0,"\u00a7 6.1.7"],[0,[],1," "],[0,[],0,"Insert the\namount and any conditions for liquidated damages relating to failure to achieve\nSubstantial Completion of the Work, or designated portion of the Work, on time.\nLiquidated damages are not a penalty to be inflicted on the Construction\nManager but must bear an actual and reasonably estimable relationship to the\nOwner\u2019s loss if construction is not completed on time. If a provision for liquidated\ndamages is included, it should be carefully drafted by the Owner\u2019s attorney and\nacceptable to the Construction Manager\u2019s attorney. For further information on\nliquidated damages see AIA Document A503, Guide for Supplementary Conditions."]]],[1,"p",[[0,[1],1,"\u00a7 6.1.8"],[0,[],0," Insert terms and conditions for any bonuses or other\nincentives that might result in a change to the Contract Sum. For further\ninformation on bonus, incentive and savings provisions, see AIA Document A503,\nGuide for Supplementary Conditions."]]],[1,"p",[[0,[1],1,"Article 7 Cost of the Work\nfor Construction Phase"]]],[1,"p",[[0,[1],0,"\u00a7 7.2.2.1"],[0,[],1," "],[0,[],0,"Identify supervisory and administrative\npersonnel that will perform Work related to the Project at a location other\nthan the Project site. Also identify the type of activity the personnel will\nperform and what percentage of their time will be required for the Work. "]]],[1,"p",[[0,[1],1,"Article 11 Payments for Construction Phase Services"]]],[1,"p",[[0,[1],1,"\u00a7 11.1.2"],[0,[],0," Insert the time period covered by\neach Application for Payment if it differs from the one given."]]],[1,"p",[[0,[1],1,"\u00a7 11.1.3"],[0,[],0," Insert the time schedule for\npresenting Applications for Payment, and indicate due dates for making progress\npayments. "]]],[1,"p",[[0,[],0,"The last day upon which Work may be included in an Application\nshould normally be no less than 14 days prior to the payment date, in consideration\nof the seven days required for the Architect\u2019s evaluation of an Application and\nissuance of a Certificate for Payment and the time subsequently accorded the\nOwner to make Payment in Article 9 of A201\u20132017. The Construction Manager may\nprefer a few additional days to prepare the Application."]]],[1,"p",[[0,[],0,"Due dates for payment should be acceptable to both the Owner and\nConstruction Manager. They should allow sufficient time for the Construction\nManager to prepare an Application for Payment, for the Architect to certify\npayment, and for the Owner to make payment. They should also be in accordance\nwith time limits established by this Article and Article 9 of A201\u20132017."]]],[1,"p",[[0,[1],1,"\u00a7 11.1.7.1"],[0,[],0," Indicate the percent retainage,\nif any, to be withheld when computing the amount of each progress payment."]]],[1,"p",[[0,[],0,"The Owner frequently pays the\nConstruction Manager the bulk of the earned sum when payments fall due,\nretaining a percentage to ensure faithful performance. These percentages may\nvary with circumstances and localities. "]]],[1,"p",[[0,[1],0,"\u00a7 11.1.7.1.1"],[0,[],1," "],[0,[],0,"Certain items\nincluded in the Contract Sum may be excluded from the calculation of retainage.\nWhere there are any limitations or exclusions from retainage, list those items.\n"]]],[1,"p",[[0,[1],1,"\u00a7 11.1.7.2 "],[0,[],0,"The AIA endorses\nthe practice of reducing retainage as rapidly as possible, consistent with the\ncontinued protection of all affected parties. A provision for reducing\nretainage should provide that the reduction will be made only if the Architect\njudges that the Work is progressing satisfactorily. If the Construction Manager\nhas furnished a bond, demonstration of the surety\u2019s consent to reduction in or\npartial release of retainage must be provided before such reduction is put into\neffect. Use of AIA Document G707A\u2122 is recommended. Insert terms for reduction\nor limitation of retainage."],[0,[1],1," "]]],[1,"p",[[0,[1],0,"\u00a7 11.1.7.3"],[0,[],1," "],[0,[],0,"Often, the\nmajority of retainage is released upon Substantial Completion of the Work.\nHowever, the Owner may continue to retain some portion of retainage to cover\nthe remaining Work to be completed. Insert any conditions for release of\nretainage upon Substantial Completion. Where bonds have been provided by the\nConstruction Manager, consent of surety should be obtained as outlined in\nSection 11.1.7.2 above."]]],[1,"p",[[0,[1],1,"\u00a7 11.2.3"],[0,[],0," Insert the date by which the\nOwner shall make final payment, if it differs from the one stated. "]]],[1,"p",[[0,[],0,"When final payment is requested, the\nArchitect should ascertain that all claims have been settled or should define\nthose which remain unsettled. The Architect should obtain the Construction\nManager\u2019s certification required by Article 9 of A201\u20132017 and must determine\nthat, to the best of the Architect\u2019s knowledge and belief and according to the\nArchitect\u2019s final inspection, the requirements of the Contract have been\nfulfilled."]]],[1,"p",[[0,[1],1,"\u00a7 11.3"],[0,[],0," Payments due and unpaid under the\nContract bear interest from the date payment is due at the legal rate\nprevailing from time to time at the place where the Project is located. If a\ndifferent interest rate is to be paid, insert the amount here."]]],[1,"p",[[0,[1],1,"Article 12 Dispute Resolution"]]],[1,"p",[[0,[1],1,"\u00a7 12.1.2"],[0,[],0," In this section, the Owner and\nConstruction Manager may identify an Initial Decision Maker to render initial\ndecisions on claims arising from or relating to the Construction Manager\u2019s\nConstruction Phase services. If the parties do not identify an Initial Decision\nMaker, then the Architect will provide initial decisions. For claims arising\nfrom or relating to the Construction Manager\u2019s Preconstruction Phase services,\nno decision by the Initial Decision Maker shall be required as a condition precedent\nto mediation and binding dispute resolution."]]],[1,"p",[[0,[1],0,"\u00a712.2"],[0,[],1," "],[0,[],0,"Select from\nthree choices of binding dispute resolution: (1) arbitration, (2) litigation or\n(3) another method that the parties must identify. Other types of dispute\nresolution include a dispute resolution board or a mini-trial. For additional\ninformation about other methods of dispute resolution, refer to The\nConstruction Industry\u2019s Guide to Dispute Avoidance and Resolution, free online\nat "],[0,[2],1,"www.adr.org"],[0,[],0,"."]]],[1,"p",[[0,[1],1,"Article 13 Termination or Suspension"]]],[1,"p",[[0,[],0,"Terminations under AIA Document A134\u20132019 are treated similarly to\nterminations under a stipulated sum agreement and so follow the provisions of\nAIA Document A201\u20132017, except that detailed instructions are provided for\ncalculating the amount due to the Contractor in the event the Owner terminates\nthe contract for cause or the Owner terminates the contract for convenience.\nNote that in the case where the Owner terminates the Contractor for cause, the\namount of the Contractor\u2019s Fee is calculated on a pro-rata basis. If the\nContractor terminates for cause, A201\u20132017 provisions govern. A134 Section\n13.2.2.2 provides (1) for the Owner to pay the Contractor fair compensation for\nany Contractor-owned equipment that the Owner chooses to use in completing the\nWork that is not included in the Cost of the Work, and (2) for the Contractor\nto facilitate assignment of subcontracts and other contracts to the Owner,\nshould the Owner elect to assume the rights and responsibilities associated with\nthose contracts."]]],[1,"p",[[0,[1],1,"\u00a7 13.2.3"],[0,[],0," AIA Document\nA201\u20132017, Section 14.4.3, requires payment of a termination fee to the\nConstruction Manager in the event that the Owner terminates the Construction\nManager for convenience. Insert here, the amount of the termination fee or the\nmethod for calculating the termination fee. For example, the Owner and\nConstruction Manager may agree to progressively increase the termination fee up\nto fifty percent completion and then agree to progressively reduce the\nConstruction Manager\u2019s termination fee until final completion. The parties may\nalso agree to begin with a large termination fee that is progressively reduced\nas the project progresses."]]],[1,"p",[[0,[1],1,"Article 14 Miscellaneous Provisions"]]],[1,"p",[[0,[1],1,"\u00a7 14.3.1"],[0,[],0," Preconstruction Phase Insurance and Bonds. Insert the policy\nlimits for the types of coverages the Construction Manager will be required to\nmaintain for the duration of its Preconstruction Phase Services. "]]],[1,"p",[[0,[1],0,"\u00a7 14.4"],[0,[],1," "],[0,[],0,"Section 1.6 of\nAIA Document A201\u20132017 allows the Owner and the Construction Manager to provide\nnotice in electronic format. It is recommended that the parties use AIA\nDocument E203\u2122\u20132013, Building Information Modeling and Digital Data Exhibit, to\nestablish the protocols for electronic communication. If E203\u20132013 is not used,\ninsert the requirements for delivering notice in electronic form such as the\nname, title, and email address of the recipient and whether the system will be\nrequired to generate a read receipt (recommended). While notice in electronic\nform may be provided as set forth in this provision, other protocols for the\nuse or transmission of digital data and BIM are established through the use of\nE203-2013, pursuant to A201-2017 section 1.7."]]],[1,"p",[[0,[1],0,"\u00a7 14.5"],[0,[],1," "],[0,[],0,"Insert other contract provisions\nhere."]]],[1,"p",[[0,[1],1,"Article 15 Scope of the Agreement"]]],[1,"p",[[0,[],0,"A detailed enumeration of all Contract Documents must be made in\nthis article. Where optional documents are listed in Section 15.2.5 that will\nbe incorporated as Contract Documents, check the appropriate box and insert an\nappropriate description of the document. List additional documents in\nSection 15.2.6 that are intended to form part of the Contract Documents."]]],[1,"p",[[0,[1],1,"EXHIBIT A Insurance and\nBonds Exhibit"]]],[1,"p",[[0,[],0,"AIA Document A134\u20132019 Exhibit A is the insurance and bonds\nexhibit for AIA Document A134\u20132019. AIA Document A134\u20132019 Exhibit A provides\nthe general requirements relating to insurance and bonds in the Construction\nPhase, as well as the specific policy limits and bond amounts for the Project.\nInsurance requirements under the exhibit are separated into those coverages\nthat would typically be provided by the Owner and Construction Manager on all\nprojects (required coverages) and other (optional) coverages that may be\nselected by the parties based on their specific needs and the needs of the\nProject. "]]],[1,"p",[[0,[],0,"A134 Exhibit A, as a stand-alone document, can be readily\ndiscussed with your insurance advisors and legal counsel. Additionally, Exhibit\nA provides an easy reference for the insurance and bonding requirements related\nto your Project. However, it is important to note that additional terms related\nto insurance are found in Article 11 of AIA Document A201\u20132017. Users are\nstrongly encouraged to review their insurance needs with legal and insurance\ncounsel to determine the appropriate insurance requirements for their\nparticular project. When forwarding AIA Document A134\u20132019 Exhibit A to your\ninsurance broker or legal counsel, be sure to include, at a minimum, Article 11\nof AIA Document A201\u20132017 as these terms will be important to reviewing Exhibit\nA and advising you of appropriate coverage. "]]],[1,"p",[[0,[1],0,"Date"],[0,[],1,". "],[0,[],0,"Identify the date of the Agreement to\nwhich AIA Document A134\u20132019 Exhibit A is attached just as it appears on the\ncover page of the Agreement."]]],[1,"p",[[0,[1],1,"Project and Parties (Cover\nPage)."],[0,[],0," Identify the Project and the parties just as they appear on the\ncover page of the Agreement."]]],[1,"p",[[0,[1],1,"Article A.2 Owner\u2019s\nInsurance"]]],[1,"p",[[0,[1],0,"\u00a7 A.2.3.1.1"],[0,[],1," "],[0,[],0,"Insert the cause of loss and any\napplicable sub-limits."]]],[1,"p",[[0,[1],0,"\u00a7 A.2.3.1.2"],[0,[],1," "],[0,[],0,"Insert the type of coverage and any\napplicable sub-limits. "]]],[1,"p",[[0,[1],0,"\u00a7 A.2.4"],[0,[],1," "],[0,[],0,"Section A.2.4 allows the Owner to\nselect extended property insurance coverage that will be purchased and\napplicable to the Project. For each of the extended property insurance\ncoverages applicable to the Project, check the appropriate box and indicate any\nlimits of coverage or any other applicable conditions in the space below the\nselected coverage. "]]],[1,"p",[[0,[1],1,"\u00a7 A.2.5"],[0,[],0," Section A.2.5\nallows the Owner to select whether it will provide cyber security insurance or\nany other types of coverage for the Project. If cyber security insurance will be\nprovided, check the box for Section A.2.5.1 and indicate any applicable limits\nof coverage or other conditions in the space provided. Where other insurance\ncoverage will be provided by the Owner, check the box for Section A.2.5.2 and\nindicate the type of coverage and any applicable limits. "]]],[1,"p",[[0,[1],1,"Article A.3 Construction\nManager\u2019s Insurance and Bonds"]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.1"],[0,[],1," "],[0,[],0,"Where the Construction Manager is\nrequired to maintain required insurance for a duration other than the period\nfor correction of the Work, indicate the duration of required coverages in the\nfill point provided. "]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.2.1"],[0,[],1," "],[0,[],0,"Indicate the applicable coverage limits\nfor the Construction Manager\u2019s commercial general liability coverage."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.3"],[0,[],1," "],[0,[],0,"Indicate the applicable coverage limits\nfor the Construction Manager\u2019s automobile liability coverage. "]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.4"],[0,[],1," "],[0,[],0,"Some insurers have written excess\npolicies which expressly state that they apply only in the event the underlying\npolicies are exhausted through payments made by the underlying insurers\n(sometimes referred to as \u0022actual exhaustion\u0022). Polices that do not\nexpressly require actual exhaustion are interpreted to permit exhaustion of the\nunderlying policies through payments or contributions made by any combination\nof underlying insurers, insureds or third parties (sometimes referred to\n\u0022functional exhaustion\u0022.) Policies that only permit actual exhaustion\nare counterproductive to settlement whereas policies that permit functional\nexhaustion encourage settlement. The intent of this section is to\nfacilitate settlement by requiring that any excess policies allow for\nfunctional exhaustion."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.6"],[0,[],1," "],[0,[],0,"Indicate the applicable coverage limits\nfor the Construction Manager\u2019s employer\u2019s liability coverage."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.8"],[0,[],1," "],[0,[],0,"Indicate the applicable coverage limits\nfor the Construction Manager\u2019s professional liability coverage, if applicable."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.9"],[0,[],1," "],[0,[],0,"Indicate the applicable coverage limits\nfor the Construction Manager\u2019s pollution liability coverage, if applicable."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.2.10"],[0,[],1," "],[0,[],0,"Where the Construction Manager\u2019s will\nprovide professional liability and pollution liability coverage under a\ncombined policy, indicate the applicable coverage limits."]]],[1,"p",[[0,[1],1,"\u00a7 A.3.2.11"],[0,[],0," Indicate the\napplicable coverage limits for Construction Manager\u2019s insurance for maritime\nliability risks associated with operation of a vessel, if the Work requires\nsuch activities. "]]],[1,"p",[[0,[1],1,"\u00a7 A.3.2.12"],[0,[],0," Indicate the\napplicable coverage limits for Construction Manager\u2019s insurance for use or\noperation of manned or unmanned aircraft, if the Work requires such activities."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.3.1"],[0,[],1," "],[0,[],0,"Where the Construction Manager\u2019s is\nrequired to maintain required insurance for a duration other than the period\nfor correction of the Work, indicate the duration of required coverages in the\nfill point provided. "]]],[1,"p",[[0,[1],1,"\u00a7 A.3.3.2"],[0,[],0," Section A.3.3.2\nallows the Construction Manager\u2019s to select whether it will provide other\ninsurance coverage in addition to that required under Section A.3.2. If other\ninsurance will be provided, check the appropriate box for each selected\ncoverage under Section A.3.3.2, and indicate any applicable limits of coverage\nor other conditions in the space provided. "]]],[1,"p",[[0,[1],1,"\u00a7 A.3.3.2.1"],[0,[],0," Section\nA.3.3.2.1 requires the Construction Manager, instead of the Owner, to provide\nbuilder\u2019s risk insurance, of the same type and scope satisfying the\nrequirements identified in Section A.2.3. Where this requirement has been\nselected, the Owner is relieved of the obligation to provide builder\u2019s risk\ninsurance except for those coverages required by Section A.2.3.1.3 and A.2.3.3.\nWhere the Construction Manager\u2019s obligation to provide builder\u2019s risk insurance\ndiffers from Section A.2.3, the differences should be described in the fill\npoint following A.3.3.2.1. Additionally, Article 11 of AIA Document A201\u00ad\u20132017\nrequires that the Owner adjust and settle losses under the builder\u2019s risk\ninsurance. If a party other than the Owner assumes this responsibility, that\ninformation should also be provided in the fill point."]]],[1,"p",[[0,[1],0,"\u00a7 A.3.4"],[0,[],1," "],[0,[],0,"Where the Construction Manager is\nrequired to provide payment and performance bonds, indicate the penal sum of\neach bond in the space provided."]]],[1,"p",[[0,[1],1,"Article A.4 Special Terms\nand Conditions"]]],[1,"p",[[0,[],0,"Indicate any special terms and conditions that modify the\ninsurance and bonds exhibit in the space provided."]]]]}
Description
Instructions for AIA Document A134™–2019, standard form of agreement between Owner and Construction Manager and is intended for use on construction management projects where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price, and the cost is not fully known at the commencement of construction.
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Instructions: A134-2019