AIA Construction Contracts: What They Are & Why an Owner Should Use One
A contract between the owner and the general contractor is the backbone of a construction project. Without a contract, the general contractor has no direction, and the owner has no protection. So it’s important to have a good, solid contract – and that’s where AIA construction contracts play a role. Let’s look at what AIA construction contracts are and why you should use one.
What makes a good construction contract?
A good construction contract is specific and tailored to the project. A contract will include legal language and exhibits such as drawings, project schedule, and any clarifications & conclusions (this is where a general contractor explains what they didn’t include and/or what they included that the drawings don’t show).
What is an AIA construction contract?
AIA stands for American Institute of Architects. This group developed nearly 200 forms and templates using input from various parties to create contracts for design and construction projects. AIA construction contracts are viewed as an industry standard and used by contractors, architects, engineers, attorneys, owners, owner representatives, and all other parties involved in a construction project.
What are the different types of AIA contracts?
AIA contracts are divided by use or purpose:
A-Series: Owner/Contractor Agreements
B-Series: Owner/Architect Agreements
C-Series: Other Agreements
D-Series: Miscellaneous Documents
E-Series: Exhibits
G-Series: Contract Administration and Project Management Forms
Why should an owner use an AIA construction contract?
AIA construction contracts are user-friendly and a good starting place for a construction or design project. But here are a few other reasons why you should consider using an AIA contract for your project:
The contracts are fair.
When using an AIA contract, an owner will be fairly represented since these contracts balance the interest of all parties.
Often, when a general contractor presents a custom contract, these can be overly complicated and biased or so simple there are no protections. If you’re presented with a custom contract, request to use an AIA contract to avoid any biased, complicated, or simple language.
The contracts reflect current industry changes.
AIA contracts are revised to reflect changes in industry practices, insurance, technology, or case/state/federal law. Often, these contracts provide a model for practitioners to follow when industry practices are inconsistent or there are no existing industry guidelines.
AIA construction contracts are flexible.
These contracts can be modified to reflect individual project needs.
AIA contracts are easy to understand.
The contract uses common language and avoids legalese or jargon wherever possible.
What are the disadvantages of using an AIA construction contract?
Though AIA contracts provide a good starting point, the problem comes in when an owner doesn’t have a standard project or isn’t sure what type of construction contract to use. This is where an owner’s representative can be helpful since they can change a standard AIA contract to help protect you.
For instance, an owner’s rep can guide you to understand if you should choose a GMP (Guaranteed Maximum Price) or lump sum contract. Additionally, an owner's representative can create language to add to the AIA contract to protect you from construction cost escalations and delays.
After your owner's rep modifies the language and before the contract is finalized, it is considered good practice to have a real estate attorney review the contract as well as they will know best how to ensure your specific interests are best protected.
Want more guidance for your next construction project contract?
With The Common Area as your owner’s representative, we can help you create a contract that protects you and your project as well as manages your project from start to finish.
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