Abbreviated and Short Form Construction Contracts for Owners

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25121-owner-contractor-agreement"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25126-owner-contractor-agreement---small-projects-edition"]],["b"],["u"],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/69981-standard-form-of-agreement-between-owner-and-contractor"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25111-owner-contractor-agreement"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25116-owner-contractor-agreement"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25131-general-conditions-of-the-contract-for-construction"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/6406765-owner-contractor-custom-residential"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/6406775-owner-architect-custom-residential"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/6403725-owner-and-home-builder-agreement"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/6404750-owner-and-home-builder-agreement-for-design-and-construction"]],["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/6488379-standard-form-of-agreement-between-owner-and-contractor"]],["strong"],["i"]],"sections":[[1,"p",[[0,[],0,"July 1, 2022"]]],[1,"p",[[0,[],0,"As an owner, you may find that you need a contract for a\nconstruction project with limited scope and complexity, and you do not want to\nuse a lengthy and complex contract. Both the "],[0,[0],1,"A104-\n2017 Standard Abbreviated Form of Agreement Between Owner and Contractor"],[0,[],0," and\nthe "],[0,[1],1,"A105-\n2017 Standard Short Form of Agreement Between Owner and Contractor"],[0,[],0," include\nterms that consider the completion of a small project. This article highlights factors\nfor you to consider when choosing between the A104-2017 and the A105-2017 for\nyour project."]]],[1,"p",[[0,[2],1,"Importance of the Contract"]]],[1,"p",[[0,[],0,"Even if the construction project is small, a construction contract\nis still important. A contract for a small project will still provide a\nplatform to clearly identify the parties\u2019 responsibilities and manage the\nparties\u2019 expectations which will facilitate a successful business relationship\nand project completion."]]],[1,"p",[[0,[2],1,"Considerations for the A104-2017 and the A105-2017"]]],[1,"p",[[0,[],0,"The A104-2017 and the A105-2017 both establish a stand-alone\ncontractual relationship between the owner and the contractor. A stand-alone\ncontract means the general conditions are included within the contract (e.g.,\nthe contract does not incorporate the general conditions by reference or as an attachment).\n"]]],[1,"p",[[0,[],0,"While both the A104-2017 and the A105-2017 include\nconsideration for projects with limited scope and complexity, the A104-2017 can\naccommodate a slightly more complex project than the A105-2017. Below are some\nof the differences to consider when selecting the appropriate contract for your\nproject."]]],[1,"p",[[0,[],0,"1. \n"],[0,[3],1,"Enumeration of the Contract Documents"],[0,[],0,". Both\ncontracts provide fill points to reference drawings, specifications, addenda,\nand other documents that will make up the definition of Contract Documents. However,\nthe A104-2017 includes specific language that allows you to incorporate building\ninformation modeling, sustainability objectives, or other supplementary\nconditions into the contract. In addition, it includes provisions that will\nassist the parties in establishing the protocols for the development, use,\ntransmission, and exchange of digital data."]]],[1,"p",[[0,[],0,"2. \n"],[0,[3],1,"Method of Compensation"],[0,[],0,". Because the A104-2017\ncan incorporate a more complex scope, this contract includes compensation by\nstipulated sum or cost of the work with or without a guaranteed maximum price. The\nA105-2017, in contrast, includes compensation by stipulated sum only. This\nmeans, generally, the A105-2017 is best for owners with projects that have a\nclear scope, detailed design, and minimal risk of encountering unforeseen conditions."]]],[1,"p",[[0,[],0,"3. \n"],[0,[3],1,"Delegated Design"],[0,[],0,". The A104-2017 allows the\ncontractor to provide professional services, if required by the Contract\nDocuments or the contractor\u2019s own responsibilities, and the contract sets forth\nthe way the delegated design will be managed by the parties. Delegated design\nis not included in the A105-2017."]]],[1,"p",[[0,[],0,"4. \n"],[0,[3],1,"Subcontractors"],[0,[],0,". The A104-2017 includes standard language related\nto the contractor\u2019s use of subcontractors to perform portions of the work. For\nexample, a few requirements of the contractor include: (i) notifying the owner\nand architect of the proposed subcontractors or suppliers for each of the principal\nportions of work; and (ii) flowing down the contractor\u2019s terms to the\nsubcontractor. The A105-2017 does not include any standard provisions related\nto the contractor\u2019s use of subcontractors in the performance of the work."]]],[1,"p",[[0,[],0,"5. \n"],[0,[3],1,"Hazardous Materials"],[0,[],0,". The A104-2017 sets for the parties\u2019 expectations\nin the event the contractor encounters hazardous waste materials or substances,\nincluding the owner\u2019s indemnification obligations. The A105-2017 does not include any language,\nindemnity or otherwise, specifically related to hazardous waste."]]],[1,"p",[[0,[],0,"6. \n"],[0,[3],1,"Dispute Resolution"],[0,[],0,". The A104-2017 dispute\nresolution provision includes the architect as the initial decision maker. Then,\nthe next step is mediation. If mediation is unsuccessful, the A104-2017\nprovides a check-box selection of the method of dispute resolution (e.g.,\narbitration, litigation, or other resolution). The A105-2017 in contrast, omits\nthe arbitration and other advanced dispute resolution provisions; however, the\nparties may include the desired dispute resolution procedure in Article 17\nwhich provides a fill point for the parties to include any additional terms and\nconditions negotiated into the contract."]]],[1,"p",[[0,[],0,"For more complex projects, parties should\nconsider using one of the following AIA owner\/contractor agreements: AIA\nDocument "],[0,[4],1,"A101-2017"],[0,[],0,",\n"],[0,[5],1,"A102-\n2017"],[0,[],0," or "],[0,[6],1,"A103-\n2017 "],[0,[],0,". These agreements are written for a stipulated sum, cost of the\nwork with a guaranteed maximum price, and cost of the work without a guaranteed\nmaximum price, respectively. Each of them incorporates by reference AIA\nDocument "],[0,[7],1,"A201-\n2017 General Conditions of the Contract for Construction "],[0,[],0,".\nFor single family residential projects, parties should consider using the AIA\nSingle Family Residential agreements: AIA Document "],[0,[8],1,"A110-2021\n"],[0,[],0,", "],[0,[9],1,"B110-2021\n"],[0,[],0,", "],[0,[10],1,"A111\u2013\n2021"],[0,[],0,", "],[0,[11],1,"A112\u2013\n2021"],[0,[],0," or "],[0,[12],1,"A113-2022\n"],[0,[],0,". These agreements are written to accommodate the construction\nand design of a single family project that ranges anywhere from complex design\nbuild, turnkey build or a remodel project. In any event, an owner should\nselect the appropriate contract only after careful evaluation of project risk\nand complexity."]]],[1,"p",[[0,[13,14],2,"AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors. Any language quoting from AIA Contract Documents that have not yet been released is subject to change before final publication."]]],[1,"p",[]]]}