The AIA A201 is important because it is mentioned in all contracts provided by AIA: agreements between the owner and the architect/designer, owners and contractors as well as contractors and subcontractors. It defines these roles as they are used in the traditional design-Bid-Build method of project preparation. An important caveat is that the new section 1.6.2 expressly provides that, unlike other types of notices under the contract, the use must be made in writing in accordance with Section 15.1.3 and is not considered to be properly provided, unless they are provided by a certified or registered mail or by couriers who provide a proof of delivery. Regardless of the electronic transmission allowed for most types of communications, claim notifications can therefore only be made by formal written notification, in a manner that provides for traditional proof of delivery. Unless the parties are amended by mutual agreement, this is an important and central distinction that project participants must be aware of to ensure that they are sending timely and correctly notifications of claims, particularly in the modern era of largely electronic project communications. Another important indication of the new section 1.6.2 is that it would not authorize hand-communication on the project site as effective communication, as there would be no evidence of delivery. Therefore, to the extent that hand delivery is an acceptable method of termination for the parties, it should be added to this section 1.6.2 as an appropriate form of transmission of a notification. Because AIA documents are used in so many projects, their models have become the „standard“ in the sector. Banks often need to use AIA contracts and forms for the projects they fund. Although they were developed by architects, they have become more friendly over the years to become entrepreneurs and subs, which is good news for the construction professionals who use them. When a project uses the AIA series of contracts, each project links the parties to the original owner/contract agreement, as well as to agreed designs, specifications, reports and terms and conditions.
Subcontractors are thus bound to the same rights and obligations as the general contractor. Due to the economic downturn of Convid 19/economic, the owner has halved the contractual height of a large hotel project, can the contractor claim the loss of profits or terminate the contract? In A201-2017, Section 14.4.3 removes the right from the contractor the right to recover the expected overhead and profits on unes executed work and instead replaces a termination fee negotiated by the parties, which is defined in a „blank“ section of the owner-contracting agreement. If the parties do not negotiate termination fees at the time of the contract, the fact that the owner does not have to pay the licensee for the overhead and expected profits would be delayed. Surprisingly, in the main agreement, the AIA did not reduce the language to the standard AIA A401-2017 subcontract, so that if the flow language is not aligned, the contractor could potentially be required to pay its subcontractor overhead and benefit on the work, which are not carried out without the right to get the same from the owner, which is a situation to be avoided. Given the importance of the terms and conditions of sale, it is essential for owners, contractors, architects and other construction projects to understand the major changes to the new A201-2017 conditions so that they understand the impact on their rights and obligations on the project. This blog is intended to provide an overview of some important changes.