Professional liability insurance for architects and engineers. Comment: The new sentence might cause some confusion. 3.3.2 The Architect shall update the estimate of the Cost of the Work prepared in accordance with Section 6.3. Unless otherwise specifically addressed in this Agreement, if neither the Owner nor the Architect is designated, the parties agree that the listed Supplemental Service is not being provided for the Project. <> �B�%�w�kC��U��H��}�1��ȩ�JT*�YݑO:������d�dVO�S��.�����S�SF That section states if the Owner requires “a detailed estimate of the Cost of the Work,” the Architect will provide the estimate as a Supplemental Service in Section 4.1.1. It is advisable that the Architect use this same type of language for other types of certifications as well. But even before this addition, Architects were routinely providing this service anyway. It will be interesting to see whether project owners actually agree to set a “Termination Fee” and, if so, whether it will continue to include something for anticipated profit on services that are not performed by the Architect. It is surprising how many lender consent forms don’t expressly require the Lender to pay amounts owed by the Owner before the assignment. In addition, if a provision such as a limitation of liability clause that was added to the Agreement contains terms that violate a state statute, the court is to apply the clause to the maximum extent permitted by law instead of throwing out the entire clause – in other words, revise the clause to delete the offending term but then enforce the clause once that offending term is removed, so as to give effect to the parties’ intentions. �;�6�mD!�bi٪h�G����;(�A��9�4�E&�h9��v]j���'�Ԫ�;x�X.h9vy��T�v�����|b�8=�d���56�9
������]�8e*v�G��_����0�44�Q.� endobj Note that payment of a “Licensing Fee” for use of the Instruments is added to the termination section of the Agreement. /Rotate 0 Comment 1: Under the 2007 edition of the B101™, architects obtained protection against claims where the owner made directives or substitutions contrary to the recommendations of the architect or that were done without the architect’s approval. This appears to clarify that this service is expected and required, and that the Architect doesn’t get paid for this as an Additional Service. 1 0 obj Following the quoted text, we provide comments on that provision. The Owner shall promptly notify the Architect of the substance of any direct communications that may affect the Architect’s services. ��'�|︐���V�`pE_�[f�g�v-S�J�i"����X�L�8��5��|��}�t��>d��MOP���rRY�ˬq!G�oe��_�����h�A����IW�J��;�[�%�hz1�j�(�m���0���w�i���'�O�m44L;��XZ�b���e�����Ost:���@k�#z6����=�Aෛ��4���_�-g\˧5C�����V�bR�o0[�n��. In fact, one vital purpose of a normal termination for convenience clause is to relieve the Owner of having to pay anticipated profits in the event that the project needs to be cancelled or the contract otherwise needs to be terminated. This article 4.1.1 requires that the parties designate which Supplemental Services are to be provided by the Architect for additional compensation, and which are to be provided by the Owner. Or perhaps add “if required” after the words “and performance criteria.” The above sentence is the second sentence of a fairly long paragraph that is not quoted in its entirety. The Architect shall provide the listed Additional Supplemental Services only if specifically designated in the table below as the Architect’s responsibility, and the Owner shall compensate the Architect as provided in Section 11.2. To make it easier to follow the changes we quote the contract language, put a strike-out line through wording that has been deleted from the Agreement, and underline wording that has been added. ); Changing previously prepared Instruments of Service due to official interpretations of codes that are contrary to the requirements existing will be paid for as additional service (§4.2.1); Owner must include the architect in all communications with the contractor that relate to or affect the architect’s services or professional responsibilities, and must notify the architect of the substance of any communications with the contractor that “relate to the project” (§5.12); Re-design with no compensation is no longer required if bids exceeded the budget due to changes in market conditions that could not have been reasonably anticipated (§6.7); Owner’s license to use the Instruments of Service is no longer created upon execution of the agreement. No option is being provided whereby the Agreement can specify that the Architect will be responsible for the contractor’s means and methods. 2.5.7 To the fullest extent permitted by law, the Architect shall cause the primary and excess or umbrella policies for Commercial Liability and Automobile Liability to include the Owner as an additional insured for claims caused in whole or in part by the Architect’s negligent acts or omissions. This exhibit eliminates the need to have a sustainable project version of each contract document. It means that if a court finds a provision of the Agreement to be void or unenforceable, the court is to nevertheless enforce the balance of the terms and conditions of the Agreement. Comment: This new language clarifies that there is no express or implied warranty by the Architect concerning compliance of the contractor’s work with the Contract Documents. 10.8.1 The receiving party may disclose “confidential” or “business proprietary” information after 7 days’ notice to the other party, when required by law, arbitrator’s order, or court order, including a subpoena or other form of compulsory legal process issued by a court or governmental entity, or to the extent such information is reasonably necessary for the receiving party to defend itself in any dispute. This was the same understanding under the 2007 edition of this section. Luckily, the AIA has released 2 documents comparing the 2007 B101 and A201 with the new 2017 documents. The license will instead only be granted after the owner complies with all contract requirements, including payment of the architect’s fees (§7.3); Termination expenses will no longer be paid as part of a termination for convenience, but there will instead be a termination fee that is established in advance as part of the agreement (§9.7); Allowing the Owner to assign the agreement is made expressly conditional upon payment to the architect of all amounts due prior to the assignment (§10.3). Additional Services are those services that may be added later as the need arises. Article 4 – Supplemental and Additional Services. Comment: The addition of the reference to section 6.3 here sets forth how the estimate is to be prepared. The seven-day advance notice requirement, however, is a reasonable compromise that will enable the client to consider what options it may have to legally object to the disclosure. 3.6.4.3 If the Contract Documents specifically require the Contractor to provide professional design services or certifications by a design professional related to systems, materials, or equipment, the Architect shall specify the appropriate performance and design criteria that such services must satisfy. 3 0 obj endobj MA�,L�-? The final sentence added to this paragraph requires that the Owner have no direct communications with subconsultants but instead always communicates through the Architect. The If the Owner requires the Architect to modify the Construction Documents because the lowest bona fide bid or negotiated proposal exceeds the Owner’s budget for the Cost of the Work due to market conditions the Architect cannot reasonably anticipate, the Owner shall compensate the Architect for the modifications as an Additional Service pursuant to Section 11.3; otherwise the Architect’s services for modifying the Construction Documents shall be without additional compensation. requests detailed cost estimating services, the Architect shall provide such services as an Additional Service under Article 4. the Architect, without additional compensation, In the event of termination not the fault of the Architect, the Architect shall be compensated. In addition to B101, AIA offers several other owner-architect agreements. 3.5 BIDDING OR NEGOTAITON PHASE SERVICES Procure Phase Services. 4.1.1 The services listed below are not included in Basic Services but may be required for the Project. These changes, as well as numerous others, are addressed in greater detail in the balance of this paper. Insert a description of the Supplemental Services in Section 45.1.2 below or attach the description of services as an exhibit to this Agreement.). It is one thing to have to make changes because codes change after contract award. 3.2.3 The Architect shall present its preliminary evaluation to the Owner and shall discuss with the Owner alternative approaches to design and construction of the Project, including the feasibility of incorporating environmentally responsible design approaches. The American Institute of Architects (AIA), on April 27, issued the 2017 update to the AIA B101™ “Standard Form of Agreement Between Owner and Architect.” There are a number of tweaks, refinements, improvements – and even a few significant changes. �j����Zr���(�K~�KʅS9ͱ0v�v�,
����SA>�j���O�W�)%��YF�3E Comment: The new wording may protect the Architect against a client arguing that the architect should not have relied on information provided by the Owner without first double checking it for accuracy.
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