See Membership
AIA Contract Documents
The American Institute of Architects (“AIA”) publishes more than 120 contracts and administrative forms that are recognized throughout the design and construction industry as documents for managing transactions and relationships involved in construction projects. AIA documents are grouped by family and by series. Documents in the same family are coordinated to tie together the various legal and working relationships on the same project types or delivery methods. They are linked by common terminology and procedures and may also adopt one another by reference. Documents in each series reflect the purpose of the document. For example, owner/contractor agreements are found in the A series.
Construction Schedule
A construction schedule is a time-based plan to construct a project. The two most common types of construction schedules are bar chart schedules and CPM (critical path method) schedules. The ideal baseline or as-planned schedule is the earliest complete and approved project schedule. The critical path determines the project’s completion date, and represents the longest continuous sequence of work. This is the sequence of work that must be progressed to avoid delays to the project completion date. A critical path exists on almost every project, and is dynamic and can change throughout the course of the project. Impacts to the critical path can result in a project delay.
Cost Plus Contracts
Cost Plus construction contracts call for the owner to pay the actual cost of the work plus a negotiated fee to the contractor, which fee may be either a fixed amount or some percentage of the contractor’s cost. Cost plus contracts are typically used on projects where the scope of work is not fully known or completed, or where certain facets of the work are uncertain. It is imperative that a cost plus contract clearly define all items to be included as costs. The cost plus contract with a guaranteed maximum price (“GMP”) is almost identical to the cost plus contract except that in the cost plus with a GMP, the contractor commits to complete the scope of work for an amount not to exceed the guaranteed maximum price, thereby shifting the risk of excess construction costs to the contractor.
Lump Sum (Fixed Price) Contracts
When the contract price is stated as a lump sum, the contract is referred to as a fixed price contract. Under a fixed price contract, the contractor bears all of the risks associated with the actual cost of completing the project. If the actual construction costs exceed the fixed price, the contractor is responsible for such excess costs and is obligated to complete the work for the fixed price. On the other hand, if the actual construction costs are less than anticipated, the contractor is entitled to the entire fixed price amount. The cost savings accrue to the contractor, increasing the contractor’s profit on the project.