Use of the Design-Build family of AIA Contract Documents is appropriate when the project delivery method is design-build. In design-build project delivery, the owner enters into a contract with a design-builder who is obligated to design and construct the project. The design-builder then enters into contracts with architects and construction contractors, as needed. Design-build documents can be used on small to large projects.
AIA Document A141™–2014 replaces AIA Document A141–2004, Standard Form of Agreement Between Owner and Design-Builder, and consists of the Agreement portion and Exhibit A, a Design-Build Amendment that is executed when the Owner and Design-Builder have agreed on the Contract Sum. Additionally, A141–2014 includes two exhibits, Exhibit B, Insurance and Bonds, and Exhibit C, Sustainable Projects. AIA Document A141–2014 forms the nucleus of the Contract for Design-Build between the Owner and Design-Builder.
Design-build is a process in which the owner contracts directly with one entity to provide both the design and construction of the project. The design-builder may be a design-build entity, an architect, construction contractor, real estate developer, or any person or entity legally permitted to do business as a design-builder in the jurisdiction where the project is located. The design-builder’s organization may take a variety of legal forms, such as a sole proprietorship, a partnership, a joint venture, or a corporation. An architect or architectural firm choosing to function as a design-builder may directly contract to perform design-build services or, alternatively, may form a separate corporate entity or joint venture for design-build.
In A141–2014, the Owner provides a set of Owner’s Criteria establishing the Owner’s requirements for the Project. Thereafter, the Design-Builder will review the Owner’s Criteria, develop a Preliminary Design and then provide a proposal to the Owner regarding the Contract Sum. Upon mutual agreement, the Owner and Design-Builder will execute the Design-Build Amendment to establish the Contract Sum and document the information upon which the Contract Sum is based. The Design-Build Amendment also includes the determination for the Cost of the Work, if the Contract Sum is based on a Cost of the Work with or without a Guaranteed Maximum Price.
AIA Document A142™–2014 replaces AIA Document A141™–2004, Standard Form of Agreement Between Design-Builder and Contractor, and consists of the Agreement portion and four exhibits: Exhibit A, Terms and Conditions; Exhibit B, Insurance and Bonds; Exhibit C, Preconstruction Services; and Exhibit D, Determination of the Cost of the Work.
A142–2014 obligates the contractor to perform the work in accordance with the contract documents, which include A142 with its attached exhibits, supplementary and other conditions, drawings, specifications, addenda, and modifications. Like AIA Document A141™–2014, AIA Document A142–2014 requires the parties to select the payment type from three choices: (1) Stipulated Sum, (2) Cost of the Work Plus Design-Builder’s Fee, and (3) Cost of the Work Plus Design-Builder’s Fee with a Guaranteed Maximum Price.
AIA Document A145™–2015 is intended to be used for a one or two family residential project and consists of the Agreement portion and Exhibit A, a Design-Build Amendment that is executed when the owner and design-builder have agreed on the Contract Sum. A145–2015 is a streamlined document developed to meet the needs of residential owners and design-builders. For commercial or multi-family design-build projects, AIA Document A141™–2014, Agreement Between Owner and Design-Builder, is more appropriate.
Design-build is a project delivery method in which the owner contracts directly with one entity to provide both the design and construction of the project. It is important to recognize that a design-builder assumes responsibility and liability for both the design services and construction work. Prior to entering into this agreement, any person or entity that wishes to act as the design-builder should consult with its legal counsel and insurance advisers. Some states may restrict or prohibit design-build practices under statutes that regulate architectural registration, contractor licensing, or incorporation of professionals. Additionally, federal, state or local law may impose specific requirements on contracts for residential construction. The requirements for single family and two family projects may be different. The owner should consult local authorities or an attorney to verify requirements applicable to this agreement.
Although A145 shares some similarities with other documents in the AIA’s Design-Build family, A145 is not coordinated for use with those documents, and should NOT be used in tandem with agreements in the Design-Build family without careful side-by-side comparison of contents.
AIA Document A441™–2014 establishes the contractual relationship between the contractor and subcontractor in a design-build project. AIA Document A441–2014 incorporates by reference the terms and conditions of AIA Document A142™–2014, Standard Form of Agreement Between Design-Builder and Contractor, and was written to ensure consistency with the AIA 2014 Design-Build family of documents. Because subcontractors are often required to provide professional services on a design-build project, A441–2014 provides for that possibility.
AIA Document B143™–2014 replaces B143–2004, Standard Form of Agreement Between Design-Builder and Architect. B143–2014 establishes the contractual arrangement between the Design-Builder and the Architect. B143 does not provide a fixed scope of architect’s services, but instead includes an extensive menu of services from which the Owner and Architect may select.
AIA Document B143 can be used for a number of different contractual scenarios that may arise on a design-build project. If the design-build entity lacks the internal capacity to provide architectural services, or is required to separately contract for architectural services by virtue of local license regulations or other legal requirements, the design-build entity can use B143 to enter into an agreement with an Architect to perform all of the architectural services on the Project. B143 can also be used, however, where the Design-Builder directly performs some of the architectural services under its agreement with the Owner. In this instance, B143 can be used to contract with additional architects that will provide portions of the architectural services. For example, the design-build entity may retain an Architect to only provide a Preliminary Design, while the Design-Builder will use either a separate Architect or its own forces to develop the Construction Documents and perform Contract Administration services.
AIA Document C141™–2014, provides a standard form for the upfront services an owner may require when considering design-build delivery. The consultant, who may or may not be an architect or other design professional, may perform a wide ranging array of services for the owner, including programming and planning, budgeting and cost estimating, project criteria development services, development of bridging documents, conducting construction, and administration services. AIA Document C141–2014 consists of the agreement portion and one exhibit, Exhibit A, Consultant’s Services. Exhibit A provides a menu of briefly described services that the parties can select and augment to suit the needs of the project. NOTE: AIA Document B142–2004 expires on December 31, 2015.
AIA Document C441™–2014 establishes the contractual relationship between the architect and a consultant providing services to the architect on a design-build project. AIA Document C441–2014 is suitable for use with all types of consultants, including consulting architects and may be used with a variety of compensation methods. C441 assumes and incorporates by reference a preexisting prime agreement between the design-builder and architect. C441–2014 was written to ensure consistency with AIA Document B143™–2014, Standard Form of Agreement Between Design-Builder and Architect, and with other documents in the AIA 2014 Design-Build family of documents.
AIA Document G741™–2015 is for implementing changes in the work agreed to by the owner and design-builder. Execution of a completed AIA Document G741–2015 indicates agreement upon all the terms of the change, including any changes in the contract sum (or guaranteed maximum price) and contract time. The form provides space for the signatures of the owner and design-builder, and for a complete description of the change.
AIA Documents G742™–2015, Application and Certificate for Payment for a Design-Build Project, and G743™–2015, Continuation Sheet for a Design-Build Project, provide convenient and complete forms on which the design-builder can apply for payment and the owner can certify the amount due. The forms require the design-builder to show the status of the contract sum to date, including the total dollar amount of the work completed and stored to date, the amount of retainage (if any), the total of previous payments, a summary of change orders, and the amount of current payment requested. AIA Document G743–2015 breaks the contract sum into portions of the work in accordance with a schedule of values prepared by the design-builder as required by Section 9.2 of AIA Document A141-2014. NOTE: The AIA does not publish a standard schedule of values form.
Because of the nature of design-build contracting, the project owner assumes many of the construction contract administration duties performed by the architect in a traditional project. Because there is not an architect to certify substantial completion, AIA Document G744–2014 requires the owner to inspect the project to determine whether the work is substantially complete in accordance with the design-build documents and to identify the date when it occurs. AIA Document G744–2014 is a variation of AIA Document G704™–2000 and provides a standard form for the owner to certify the date of substantial completion.
AIA Document G745™–2015 is a directive for changes in the Work for use where the owner and design-builder have not reached an agreement on proposed changes in the contract sum or contract time. AIA Document G745–2015 was developed as a directive for changes in the work which, if not expeditiously implemented, might delay the project. Upon receipt of a completed G745–2015, the design-builder must promptly proceed with the change in the work described therein, unless the design-builder determines the applicable building codes or other regulatory requirements, including those related to health, safety, and welfare, preclude implementation of the change.