What is AIA document A101?

What is AIA document A101?

AIA A101®–2017 is a standard form of agreement between owner and contractor for use where the basis of payment is a stipulated sum or fixed price. This insurance and bonds exhibit is a critical part of the owner/contractor agreement and should be discussed with legal and insurance counsel.

What is a GMAX contract?

Guaranteed Maximum Price (GMP or GMAX) contract means a cost-plus agreement with a cap on the owner’s total liability for the costs of construction of the project, also considered the “not to exceed” price by the Owner.

What is a stipulated sum in AIA contracts?

A stipulated sum contract requires that the contractor agree to be responsible for the proper job execution at a set price. One example of a stipulated sum contract is AIA Contract Document A101-2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum.

Are AIA contracts fair?

When a real property owner retains an architect or contractor to perform work related to its property, the owner is often presented with a “standard” form agreement drafted by the American Institute of Architects (AIA). AIA form agreements are not as impartial and balanced as they may appear.

What is a fixed fee contract?

A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.

What is guaranteed maximum cost contract?

The guaranteed maximum price is the most a contractor can bill a customer for a project. Also known as “not-to-exceed price” contracts, these agreements require customers to compensate contractors for their direct costs and a fixed fee for overhead and profit, but only to a certain threshold.

What is guaranteed maximum price contract?

A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) where the contractor is compensated for actual costs incurred plus a fixed fee subject to a ceiling price.

Which is the standard form of AIA contract?

A132-2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition This contract is used on projects where the basis of payment is either a stipulated sum (fixed price) or cost of the work plus a fee, with or without a guaranteed maximum price where construction manager is the adviser.

When to use a guaranteed maximum price AIA Document?

Guaranteed Maximum Price. This standard form of agreement between owner and contractor is appropriate for use on large projects requiring a guaranteed maximum price, when the basis of payment to the contractor is the cost of the work plus a fee. AIA Document A102™–2007 is not intended for use in competitive bidding.

How does AIA calculate architect’s fee for a project?

AIA’s new B101-2017 agreement attempts to bring clarity to the murky world of percentage-based compensation. Architects often set their compensation as a percentage of project costs. After all, the cost to build a project directly relates to its complexity and to the degree of design services the architect is expected to perform.

Which is the best AIA form for cost plus?

A cost-plus arrangement allows work to proceed even though the design is not far enough along to allow the contractor to develop a lump sum price. However, the AIA A102 form would not be the first choice of cost-plus contracts for fast track jobs because of its GMP provisions. A103 is a better choice.