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A-201
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AbstractThe Fifteenth Edition of the American Institute of Architects (AIA) A201 General Conditions of the Contract For Construction, published in late 1997, is the latest generation of a document whose history traces back to the beginning of this century. Part of the contract documents between the Owner and the Contractor who will construct the project, the A201 General Conditions attempt to set forth the rights and responsibilities of the parties and define their relationship. While the Architect is typically not a party to the agreement between the Owner and Contractor, the A201 helps define the Architect's role as well in the traditional three-party approach to construction. Throughout its evolution, the A201 has become for many the benchmark document on which project Owners, Contractors and Architects base their relationships. Part of the family of AIA standard form contract documents, the document even affects other parties to the project, including Subcontractors and sureties. Widely used throughout the construction industry for small and large projects alike, the A201 is frequently adopted by reference into other agreements, including those between the Owner and Architect, and the Contractor and Subcontractor. Even when not used, the principles of the A201 are often employed in Owner-drafted documents. The latest generation of the A201 General Conditions is something of a Rorschach test for the construction industry. The reactions of Owners, Contractors and Architects to the new A201 reveal how they view the state of construction as they approach the new century. Indeed, the changes between the Fourteenth and Fifteenth editions of the A201 are the subject of much debate among Owners, Contractors, Architects and others. To some it simply represents a statement of how business is currently done in the construction industry. To others, the changes in the documents represent a sea change in the way construction relations are structured, a transition from one world to another. To still others the document is a wishful statement of how business should be done. TABLE OF CONTENTSII. AIA Document Family 2 III. Major Changes in A201 (1997) ..3 IV. Design Delegation 3 A. Concerns Over the Practice of Design Delegation 4 B. Design Delegation Under the 1997 A201 - The First of the Big Four 5 V. Mutual Waiver of Consequential Damages 9 A. What Are Consequential Damages ? 9 B. Contractor's Consequentials--Home Office Overhead 10 C. Contractor's Consequentials--Lost Profits 11 D. Contractor's Consequentials--Bonding Capacity 12 E. Contractor's Consequentials--Professional Reputation 12 F. Owner's Consequentials--Loss of Use 12 G. Owner's Consequentials--Lost Profits 12 H. Owner's Consequentials--Diminution in Value 12 I. Owner's Consequentials--Lost Rent 13 J. A201 's Mutual Waiver of Consequential Damages - The Second of the Big Four 13 K. The Effect of the Mutual Waiver of Consequential Damages on Design Delegation 15 L. The Effect of the Mutual Waiver of Consequential Damages on Home Office Overhead 15 M. The Effect of the Mutual Waiver of Consequential Damages on Liquidated Damages--Is the Owner's Waiver a Mirage? 15 N. The Effect of the Mutual Waiver of Consequential Damages on Claims against the Architect 16 VI. Indemnification - The Third of the Big Four 16 VII. Hazardous Materials - the Fourth of the Big Four 18 VIII. Claims and Disputes 19 IX. Warranty and Correction of Work 20 X. Insurance 21 XI. Other Important Changes 22 A. Article 1--General Provisions 22 B. Article 2--Owner 22 C. Article 3--Contractor 22 D. Article 5--Subcontractors 23 E. Article 6--Construction By Owner or By Separate Contractors 24 F. Article 7--Changes In The Work 24 G. Article 8--Time 24 H. Article 9--Payments and Completion 24 I. Article 13--Miscellaneous Provisions 25 J. Article 14--Termination Or Suspension Of The Contract 25 XII. Conclusion 25 |
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![]() Last updated 8 June 2001 |