However, the A401 automatically supports the terms of the higher order agreements between the main contractor and the owner. The AIA creates a large number of contracts that, in this scenario, can be applied depending on the type of project. Two of the most common are the owner-contracting A101 contract (for a project with lump sum payments) and the A201 (Terms and Conditions of the Construction Contract). Subcontractors should read and understand all AIA contract documents relating to their project. C201-2015 (formerly G601-1994), Consultant`s Services, Land Survey 1.6: On request, the contractor makes available to the subcontractor a complete set of subcontracting documents to contract to subcontractors before executing the contract… Provides limited access by the contractor to obtain the owner`s financial information. According to Constructor Magazine, AIA A201 had, prior to 2007, the provision that a contractor could finance the owner on different dates during the project. Starting in 2007, a contractor can only request financial information at the beginning of an organization.” The American Institute of Architects (AIA) is one of the largest professional associations in the design and construction industry. They create and sell documents that are often used in construction projects, including contracts, payment requests and more. In this article, we examine the pros and cons of AIA contracts for subcontractors. The AIA does not only write contracts. They also produce a variety of documents that work with them. Some of the most common AIA documents for subcontractors are: A503-2007 (formerly A511-1999), Guide to Additional Conditions Similarly, according to document A401, the subcontractor has access to information about the general contractor`s financial health on the project – but must file his application before signing the subcontracting.
Whether or not you use AIA contract documents, always consult a lawyer before signing a contract. It is particularly useful to find one that specializes in construction; They`ll know what they need to watch out for. Here are some of the common drawbacks of AIA contracts for subcontractors: Retainage, also known as conservation, is usually 5 to 10% of the contract price. It can be difficult for subcontractors to collect months or even years after the project is completed. Given that profit margins in the construction sector are on average less than 4%, a delay in cashing can have serious consequences on a subcontractor`s cash flow and sustainability. Since the AIA documents link the subcontractor to the terms of the first owner agreements, it is clear that the subcontractor needs access to these documents. But the A401 doesn`t really need the prime number to provide this information to its pennies. It only requires the prime number to “provide documents.” The AIA`s contractual documents reflect changes to the legislation. They will be revised and updated to meet the current jurisdictional priority and compensation insurance.Leave a reply