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A113-2022 Standard Form of Agreement Between Owner and Contractor for Remodel of a Single Family Home

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April 6, 2022

The AIA (American Institute of Architects) has introduced the A113-2022 Standard Form of Agreement Between Owner and Contractor for Remodel of a Single Family Home, a pivotal document for residential remodelers. This agreement is specifically crafted to address the unique complexities of home remodeling projects. Designed to simplify the contracting process, the A113 contract is an essential tool for managing the responsibilities of both homeowners and contractors while mitigating common risks. 

What is the AIA A113-2022 Contract for Residential Remodeling?

The A113-2022 is a contract agreement between a homeowner (owner) and a contractor specifically for the construction phase of residential remodeling. Unlike other general contracts, A113 focuses on remodeling projects such as kitchen and bathroom renovations, without including design or construction administration services from an architect. For these services, homeowners may hire an architect separately or opt for a design-build contractor who provides both design and construction services. 

Key Features of the AIA A113-2022 Agreement

The AIA A113 contract addresses several critical elements tailored to home remodeling projects, offering a streamlined and user-friendly approach. Key provisions include: 

• Ownership and Responsibilities: The contract outlines the clear division of responsibilities between the homeowner and the contractor, ensuring expectations are well-defined. 
• Insurance Requirements: Both parties are required to carry essential insurance, including commercial general liability, workers’ compensation, and builder’s risk insurance. The homeowner must also secure property insurance to cover damages to the existing structure not covered by the contractor’s builder’s risk policy. 
• Payment Schedule: The agreement establishes a clear payment schedule based on construction milestones, helping both parties stay on track and avoid payment disputes. 
• Owner’s Special Requirements: The owner can specify unique needs, such as restricted areas within the home or special instructions on salvaging certain items. 

Insurance and Liability Considerations in Remodeling Contracts

Insurance is an important aspect of any remodeling contract, and A113 ensures both parties are adequately protected. The contractor is required to maintain commercial general liability, automobile liability, workers’ compensation, employers’ liability, and builder’s risk insurance. 

Homeowners, on the other hand, are required to carry liability and property insurance. This property insurance should cover the full replacement value of their property that may be damaged or destroyed during the remodeling process—especially important because remodeling projects often involve working within an existing structure. This type of coverage helps ensure that any damage to the existing home structure or its contents is covered, something that is not always included in the contractor’s builder’s risk insurance. 

How AIA A113-2022 Helps Manage Remodeling Risks

A113 helps reduce the risks commonly associated with remodeling projects by providing a well-defined framework for all parties involved. Key provisions within the contract mitigate potential disputes and misunderstandings, especially in areas like: 

• Site Access and Safety: Given that homeowners are often living on-site during remodeling, the A113 contract includes provisions that allow homeowners to specify areas of the home contractors and workers cannot access, or hours during which work must cease. 
• Construction Milestones: The contract allows the parties to set clear commencement and completion dates, with a milestone-based payment schedule that keeps the project on track. 
• Termination for Non-Payment: If the homeowner fails to make payments as outlined, the contractor can terminate the agreement. Likewise, the homeowner has the right to terminate the contractor for significant breaches of the contract. 

Understanding the Payment Schedule and Milestones in A113-2022

The AIA A113-2022 contract provides a payment schedule based on the completion of construction milestones. This ensures that both parties agree on when payments are due, tied directly to project progress. This helps avoid misunderstandings and financial disputes throughout the remodeling process. The fill points within the contract allow the parties to specify important dates for the commencement and completion of the work. 

How AIA A113-2022 Addresses Owner/Contractor Responsibilities

A successful home remodeling project hinges on clear communication and well-defined roles. The AIA A113-2022 contract ensures that both the homeowner and contractor understand their responsibilities. For example, the homeowner is required to supply detailed project information, including property restrictions and homeowners’ association requirements. These details are essential for compliance with local regulations and for ensuring that the remodeling project adheres to any jurisdiction-specific laws, such as consumer protection or mechanic’s lien notification requirements. 

Moreover, the contract includes provisions for consultants, subcontractors, warranties, and any changes to the scope of work, providing a comprehensive framework for managing the project efficiently. 

Specific Provisions for Home Remodeling Projects

Unlike general construction agreements, A113 includes provisions specifically for remodeling projects, such as: 

• Owner Residence During Construction: The owner often lives on-site during the remodeling, which presents unique challenges. A113 addresses this by allowing the homeowner to establish limits on site access and set working hours. 
• Salvaging and Protecting Items: The owner can specify which items should be salvaged or receive special protection, ensuring that important possessions are preserved during the remodeling process. 

Termination Clauses and Project Completion in A113-2022

The A113 contract includes provisions that protect both the homeowner and the contractor in the event of contract termination. If the homeowner fails to make the required payments, the contractor can terminate the agreement. Similarly, the homeowner can terminate the contractor for a substantial breach of the contract. However, the contract does not provide for termination for convenience, which helps maintain stability throughout the project. 

Why AIA A113-2022 Is Essential for Remodelers

For residential remodelers, A113-2022 offers a streamlined, legally sound approach to managing complex remodeling projects. It provides clarity, sets clear expectations, and addresses the unique risks associated with working in an occupied home. The agreement helps both homeowners and contractors navigate potential issues related to insurance, payments, site access, and termination. 

Additionally, given the emotional investment homeowners often have in their remodeling projects, the A113 contract serves as a critical tool for managing client relationships, ensuring that both parties are aligned for a successful project completion. 

The AIA A113-2022 contract is an invaluable resource for homeowners and contractors embarking on residential remodeling projects. By clearly defining roles, responsibilities, and expectations, it helps mitigate common risks and ensures a smoother, more efficient process. Whether you’re working on a kitchen remodel, bathroom renovation, or larger home improvements, this contract serves as a key tool for managing both the logistical and legal aspects of the project. 

l, Esq. was Senior Director of Content for AIA Contract Documents for over ten years. She is currently a consultant.

AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.