Abstract
We have all heard the phrase “the job isn’t done until the paperwork is done.” Nowhere is that more true than in the field of construction law. The completion of work requires an immense volume of paperwork exchanged between contracting parties. Most of these documents are designed to protect the parties and create a record. Still others are symbols representing transfers of risk and responsibility and taking the place of what were once more elaborate customs associated with improving land.
Comparing the general conditions of two sets of standard form conditions—the AIA A201-1997 General Conditions (A201) and the Engineers Joint Contract Document Committee (EJCDC) General Conditions—illustrates some differences in the potential allocation of the paperwork burden, and in the effect of the paperwork itself. The following provisions are to be considered:
A201 (AIA)
§ 9.1 Contract Sum
§ 9.2 Schedule of Values
§ 9.3 Applications for Payment
§ 9.4 Certificates for Payment
§ 9.5 Decisions to Withhold Payment
§ 9.8 Substantial Completion
§ 9.10 Final Completion and Final Payment
EJCDC General Conditions
14.01 Schedule of Values
14.02 Progress Payments
14.03 Contractor's Warranty of Title
14.04 Substantial Completion
14.06 Final Inspection
14.07 Final Payment
This paper addresses the key questions answered by the above provisions: What is the basis for entitlement to payment? Who gets paid, how much, and what is the effect of the paperwork that goes with it? What documents indicate that the work is substantially complete, and what documents are the prerequisites to final payment?
Table of Contents
- INTRODUCTION
- THE CLOSING OUT PROVISIONS
- A basic question: What is the basis for payments?
- Applications for Payment
- Who gets paid for what?
- How much gets paid?—Progress Payments
- Effect of Payment—Certificate of Payment
- Substantial Completion of the Work
- Submission of punchlist by the Contractor
- Inspection and reinspection by the Architect/Engineer/Owner’s representative
- Scope of an inspecting party’s duties
- Contractual provisions shifting risk to the Contractor
- Satisfaction Clauses
- Additional requirements for substantial completion
- Final payment prerequisites
- General prerequisites
- TA Operating Corporation v. Solar Applications Engineering, Inc.
- Procedural tools in litigation
- The doctrine of substantial performance
- CONCLUSION
APPENDICES
AIA Document A207
General Conditions
Petition: SOLAR APPLICATIONS ENGINEERING, INC. v. T.A. OPERATING CORPORATION
Opinion: SOLAR APPLICATIONS ENGINEERING, INC. v. T.A. OPERATING CORPORATION
Rule 54
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