Identification and Acceptance of Subcontractors

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["a",["href","https:\/\/www.aiacontracts.org\/contract-documents\/25131-general-conditions-of-the-contract-for-construction"]],["b"],["u"],["i"],["strong"]],"sections":[[1,"p",[[0,[],0,"September 28, 2022"]]],[1,"p",[[0,[],0,"This article will highlight some of the key components of\nthe identification and acceptance of subcontractors and material suppliers found\nin Section 5.2.1 through Section 5.2.3 of the "],[0,[0],1,"A201-\n2017 General Conditions of the Contract for Construction "],[0,[],0,". "]]],[1,"p",[[0,[],0,"Section 5.2.1, requires you, as a Contractor, to submit your\nlist of subcontractors and material suppliers. Unless another time period is\nagreed upon, the Owner and Architect will have fourteen days to object to any\nof the proposed persons or entities. It is important to remember there is not\nrequirement for the Owner and Architect to affirmatively approve the persons or\nentities you proposed. Instead, if there\nis not an objection within the time allowed, the proposed persons or entities are\ndeemed accepted. "]]],[1,"p",[[0,[1],1,"Purpose"]]],[1,"p",[[0,[],0,"So, you may be asking, what is the\npurpose of this section? In most cases, a general contractor performs the Work\nwith support of subcontractors and principal material suppliers. Because of\nthat, providing a list of persons or entities that will perform the Work\ngoverned by the contract for construction is important. For example, Section 5.2.1 may help the Owner\nand Architect:"]]],[3,"ol",[[[0,[],0,"Evaluate conflicts of interest;"]],[[0,[],0,"Confirm the proposed persons or entities can deliver on\n critical portions of the Work; or "]],[[0,[],0,"Reduce the risk of the Contractor bid shopping after the\n execution of the contract for construction. As a reminder, bid shopping is\n generally described as the unethical practice of sharing a subcontractor\u2019s\n bid to another subcontractor with the hope that the other subcontractor\n will provide the same Work for a lower price."]]]],[1,"p",[[0,[1],1,"Other Considerations"]]],[1,"p",[[0,[],0,"The sections that follow Section 5.2.1,\nprovide other important considerations during the process of identifying and\naccepting subcontractors and material suppliers. "]]],[1,"p",[[0,[],0,"1. "],[0,[2],1,"Mutual\nAcceptance"],[0,[1],1,". "],[0,[],0,"Section 5.2.2\nrequires that the subcontractor and suppliers must be mutually acceptable to\nthe Owner, Architect and the Contractor. Stated another way, the Contractor\ncannot utilize a proposed person or entity that has been timely rejected by the\nOwner and Architect, and the Contractor cannot be forced to use a subcontractor\nto whom it has made a reasonable objection."]]],[1,"p",[[0,[],0,"2. "],[0,[2],1,"Impact\nto the Contract for Construction"],[0,[],0,"."],[0,[1],1," "],[0,[],0,"Section 5.2.3 recognizes that a\nreplacement subcontractor may not be able to perform the work for the same\nprice and within the same time schedule as the subcontractor rejected by the\nOwner and Architect. Because of this, the Contractor is entitled to Change\nOrder to reflect any changes in the Contract Sum or the Contract Time. However,\nentitlement to this change is conditioned upon whether: (a) the rejected\nsubcontractor was reasonably capable of performing the Work; and (b) the\nContractor does not delay in proposing another subcontractor to whom the Owner\nand Architect has no reasonable objection."]]],[1,"p",[[0,[3,4],2,"AIA Contract Documents has provided this article for\ngeneral informational purposes only. The information provided is not legal\nopinion or legal advice and does not create an attorney-client relationship of\nany kind. This article is also not intended to provide guidance as to how\nproject parties should interpret their specific contracts or resolve contract\ndisputes, as those decisions will need to be made in consultation with legal\ncounsel, insurance counsel, and other professionals, and based upon a multitude\nof factors. "]]]]}