Construction contracts with private owners
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Construction Contracts with Private Owners. Common Contract Documents Used AIA Documents AGC Documents EJCDC Documents. Standardized Forms. Issued by industry and professional associations and governmental agencies for use in private and public projects.

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Construction contracts with private owners
Construction Contracts with Private Owners

  • Common Contract Documents Used

    • AIA Documents

    • AGC Documents

    • EJCDC Documents

Standardized forms
Standardized Forms

Issued by industry and professional associations and governmental agencies for use in private and public projects.

The most commonly used ones are prepared by:

AGC - Associated General Contractors of America

AIA - American Institute of Architects

ASCE - American Society of Civil Engineers

CEC - Consulting Engineers Council

EDA - Economical Development Association

EPA - Environmental Protection Agency

FHA Farmers Home Administration

HUD - Housing and Urban Development

Standardized forms continued
Standardized Formscontinued

JPL - Jet Propulsion Laboratory

NASA - National Aeronautics and Space Administration

NAVFAC- Naval Facilities Engineering Command

NSPE - National Society of Professional Engineers

SCS - Soil Conservation Service

USBR - US Bureau of Reclamation

USCE - US Army Corps of Engineers

(joint) - Contract Documents for Federally-assisted Water and Sewer Projects EDA; EPA; FHA; HUD; ACEC; APWA; ASCE; AGC; NSPE; NUCA

Aia document a201
AIA Document A201

  • General Conditions of the Contract for Construction

  • 1999 Edition

  • This document has been approved and endorsed by the Associated General Contractors of America

  • Used in private work

  • Entire document is in text. READ EVERY WORD!

Aia a201 articles 1999
AIA A201Articles, 1999

  • 1. General Provisions

  • 2. Owner

  • 3. Contractor

  • 4. Administration of the Contract

  • 5. Subcontractors

  • 6 Construction by Owner or by Separate Contractors

  • 7. Changes in the Work

  • 8. Time

Aia a201 articles 19991
AIA A201Articles, 1999

  • 9. Payments and Completion

  • 10. Protection of Persons & Property

  • 11. Insurance & Bonds

  • 12. Uncovering & Correction of Work

  • 13. Miscellaneous Provisions

  • 14. Termination or Suspension of the Contract

Article 1 general provisions
Article 1General Provisions


  • Agreement between Owner and Contractor

  • Conditions of the Contract

    General, Supplementary & other


  • Drawings

  • Specifications

  • Addenda issued prior to execution of the Contract

  • Other documents listed in the Agreement and Modifications issued after execution of the Contract

A modification is
A Modification is:

  • A written amendment to the Contract signed by both parties

  • Change Order

  • Construction Change Directive


  • A minor change in the work issued by the Architect.

The contract documents
The Contract Documents

  • Shall not be construed to create a contractual relationship:

    • Between the Architect & Contractor

    • Between the Owner & a Subcontractor or Sub-subcontractor

    • Between any persons or entities other than the Owner and Contractor

Article 2 owner
Article 2Owner

  • The Owner shall furnish the Contractor reasonable evidence that financial arrangements have been made

  • Surveys’ describing physical characteristics, legal limitations and utility locations

  • Information or services under the Owner’s control

Article 3 contractor
Article 3Contractor

  • The Contractor shall pay

    • Sales taxes

    • Consumer use taxes

    • And similar taxes

The contractor will not perform work to be contrary to
The Contractor will not perform work to be contrary to:

  • Laws

  • Statutes

  • Ordinances

  • Building codes, rules, regulations

  • The Contractor shall employ a competent superintendent

The contractor shall
The Contractor shall

  • Review, approve & submit to the architect shop drawings, product data, samples and similar submittals required by the contract

  • Provide the owner and architect accesses to the work


  • The Contractor shall indemnify and hold harmless the Owner, Architect, Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work

Article 4 administration of the contract
Article 4Administration of The Contract

  • The architect will provide administration of the contract

    • During construction until final payment is due

    • Advise and consult with the owner and visit the site

    • Make inspections to check quality or quantity of work

    • Keep the owner informed of progress

    • Guard against defects and deficiencies

    • Review and certify the amounts due the contractor

    • Issue certificates for payment

    • Have authority to reject work and approve contractor’s submittals

    • Prepare change orders and directives, and may authorize minor changes

Architect will review claims
Architect Will Review Claims

  • Take actions within ten days:

    • Request additional supporting data

    • Submit schedule

    • Reject the claim in whole or in part, stating reasons for rejection

    • Recommend approval of the Claim

    • Suggest a compromise


  • In accordance with the Rules of American Arbitration Association

  • The award rendered by the arbitrator shall be final

Article 5 subcontractors
Article 5Subcontractors

  • The Contractor shall not

    • contract with a proposed person whom the owner or Architect has made reasonable and timely objection

    • be required to contract with anyone whom the Contractor has made reasonable objection


  • The Contractor shall not contract with a proposed person whom the owner or Architect has made reasonable and timely objection

  • Be required to contract with anyone whom the Contractor has made reasonable objection

Article 6 construction by owner or separate contract
Article 6Construction By OwnerOr Separate Contract

  • Use owner’s workforce

  • Separate contract new company

  • Owner provides coordination

  • Owners right to clean up and to charge the contractors

Article 7 change in work
Article 7Change In Work

May be accomplished by:

  • Change order

  • Change directive

  • Minor change order

Change orders
Change Orders

  • A Change Order is a written instrument prepared by the Architect and signed by the Owner, Contractor and Architect, stating their agreement upon all of the following:

  • Change in the Work

  • Change in the Contract Sum

  • Change the Contract Time

Construction change directives
Construction Change Directives

  • A written order prepared by the Architect and signed by the Owner

  • Directing a change in the Work

  • Shall be used in the absence of total agreement on the terms of a Change Order

  • Change Order is based upon agreement among the Owner, Contractor and Architect

Minor changes in the work
Minor Changes In The Work

  • Architect will have authority to order minor changes in the Work

  • Not involving adjustment in the Contract Sum or extension of the time

  • Such changes shall be effected by written order and shall be binding

Article 8 time
Article 8Time

  • Contract Time is the period of time for Substantial Completion

  • The date of commencement of the work is the date established in the agreement

  • The term day as used in the Contract documents shall mean calendar day

Article 9 payments completion
Article9Payments & Completion

  • Schedule of values

  • Applications for payment

  • Certificates for payment

  • Decisions to withhold certification

  • Progress payments

  • Failure of payment

  • Substantial completion

  • Partial occupancy or use

  • Final completion and final payment

Article 10 prot of persons property
Article 10Prot of Persons &Property

  • Safety Programs

  • Contractor shall take reasonable precautions

  • Hazardous materials

  • Emergencies

Article 11 insurance bonds
Article 11Insurance & Bonds

  • Protects Contractor from claims or damage

  • Under workmen’s compensation

  • Because of bodily injury, sickness, or death of the Contractor’s employees

  • Same for any person other than the Contractor’s employees

  • Insured by usual personal injury liability coverage

  • Other than to the Work itself because of injury to or destruction of tangible property

  • Because of bodily injury death of a person or property damage arising from use of a motor vehicle and

  • Liability insurance applicable to the Contractor’s obligations under indemnification

Certificates of insurance
Certificates Of Insurance

  • Acceptable to the Owner shall be filed with the Owner prior to commencement of the work

  • Certificates will not be cancelled until at least 30 days’ prior written notice has been given to the Owner

Owner s liability insurance
Owner’s Liability Insurance

The Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance

Property insurance
Property Insurance

  • The Owner shall purchase property insurance

  • This insurance shall include interests of the Owner, the Contractor, Subcontractors and Sub-subcontractors

  • Property insurance shall be on an all-risk policy form and shall insure against “The perils of fire physical loss or damage including theft, vandalism malicious mischief, collapse, falsework, temporary buildings and debris removal including demolition”

Waivers of subrogation
Waivers of Subrogation

  • The Owner and Contractor waive all rights against each other and

  • Any of their subcontractors, sub-subcontractors, agents and employees, each of the other, and

  • The Architect, Architect’s consultants, separate contractors

  • And any of their subcontractors, sub-subcontractors

Performance payment bonds
Performance & Payment Bonds

Thc Owner shall have the right to require the Contractor to furnish bonds covering faithful performance

Article 12 uncovering correction of work
Article 12Uncovering & Correction of Work

  • Uncovering work for Architect’s examination

    • Who pays

    • Conditions

  • Corrections

    • Before or after Substantial Completion

  • Acceptance of nonconforming work

Article 13 miscellaneous provisions
Article13Miscellaneous Provisions

  • Governing law

  • Successors and assigns

  • Written notice

  • Rights and remedies

  • Acceptance of nonconforming work

  • Tests and inspections

  • Interest

Article 14 termination or suspension of the contract
Article14Termination Or Suspensionof the Contract

Contractor may terminate the Contract if:

  • A court or other public authority having jurisdiction orders it

  • An act of government, such as a declaration of national emergency

  • Architect has not issued a Certificate for Payment

  • If repeated suspensions, delays or interruptions by the Owner

  • Owner has failed to furnish to the Contractor promptly reasonable evidence of financing.

Termination by the owner for cause
Termination ByThe Owner for Cause

  • The Owner may terminate the Contract if the Contractor: Persistently refuses to supply enough properly skilled workers or proper materials

  • Fails to make payment to Subcontractors for materials or

  • Persistently disregards laws, ordinances, or rules, regulations or orders of a public authority

  • Otherwise is guilty of substantial breach of a provision of the Contract Documents

Suspension by the owner for convenience
Suspension By The Owner For Convenience

The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work