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Construction Contracts with Private Owners
Common Contract Documents Used• AIA Documents• AGC Documents• EJCDC Documents
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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
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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
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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!
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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
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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
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Article 1 General Provisions
CONTRACT DOCUMENTS CONSIST OF: Agreement between
Owner and Contractor Conditions of the Contract
General, Supplementary & other
Conditions Drawings Specifications Addenda issued prior to
execution of the Contract Other documents listed in the
Agreement and Modifications issued after execution of the Contract
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A Modification is:
A written amendment to the Contract signed by both parties
Change Order Construction Change
Directive
or A minor change in the work
issued by the Architect.
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The Contract Documents
Shall not benot 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
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Article 2 Owner
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
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Article 3 Contractor
The Contractor shall pay
• Sales taxes
• Consumer use taxes
• And similar taxes
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The Contractor will not perform work to be
contrary to:
Laws Statutes Ordinances Building codes, rules,
regulations The Contractor shall
employ a competent superintendent
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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
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Indemnification
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
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Article 4 Administration 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
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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
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Arbitration
In accordance with the Rules of American Arbitration Association
The award rendered by the arbitrator shall be final
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Article 5 Subcontractors
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
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Subcontractors
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
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Article 6Construction By Owner
Or Separate Contract
Use owner’s workforce Separate contract new
company Owner provides
coordination Owners right to clean up
and to charge the contractors
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Article 7 Change In Work
May be accomplished by:
Change order
Change directive
Minor change order
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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
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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
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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
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Article 8 Time
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
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Article 9 Payments & 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
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Article 10Prot of Persons &Property
Safety Programs
Contractor shall take reasonable precautions
Hazardous materials
Emergencies
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Article 11
Insurance & 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
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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
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Owner’s Liability Insurance
The Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance
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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”
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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
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Performance & Payment Bonds
Thc Owner shall have the right to require the Contractor to furnish bonds covering faithful performance
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Article 12Uncovering & Correction
of Work
Uncovering work for Architect’s examination• Who pays• Conditions
Corrections• Before or after
Substantial Completion Acceptance of
nonconforming work
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Article 13 Miscellaneous Provisions
Governing law Successors and assigns Written notice Rights and remedies Acceptance of
nonconforming work Tests and inspections Interest
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Article 14 Termination Or Suspension
of 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.
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Termination By The 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
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Suspension By The Owner For Convenience
The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work