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According to the AIA, the 2017 document set simplifies the payment provisions found in the older documents.  In order to simplify the payment provisions, the AIA merely reorganized the items to be listed in a payment application such that those that are to be included in the payment applications are listed first, followed by a list of those items that are to be deducted. The AIA also added an express retainage provision that provides an area to exclude certain common items from retainage, such as general conditions or insurance.

The revised AIA A101 language requires the Owner to pay the contract amount “allocable to the work.” The references to completed percentages of the work and a schedule of values are de-emphasized in contrast to the 2007 documents.

The A102 continues to use percentage of the work and schedule of values for billing purposes. Contractors are instructed to deduct from payment applications any amount that the Contractor does not intend to pay to a subcontractor.

W Mason is an partner with the law firm Fox Rothschild LLP. W is Board Certified in Construction Law by the Florida Bar Association. W focuses his practice on construction and business litigation. You can reach W at (561) 804-4432 or wmason@foxrothschild.com.

The new E204 Sustainable Projects Exhibit addresses the risks and responsibilities unique to projects involving sustainable design and construction. The AIA has taken many of the provisions
found in various AIA contract documents related to sustainable projects and has created a single exhibit. The procedures and terminology related to sustainable projects is identical the former provisions, but now those provisions are organized in a single exhibit. The E204 has been developed for use on projects in which the Sustainable Objective includes obtaining a Sustainability Certification, such as LEED® (Leadership in Energy and Environmental Design), or those in which the Sustainable Objective is based on incorporation of performance-based sustainable design or construction elements.

Contractors should make sure to review and understand the E204 as the Contractor is responsible for performing those Sustainable Measures assigned to the Contractor by the Sustainability Plan. While E204 does not require the Contractor to guarantee achievement of the Sustainable Objective, the Contractor will be responsible for failure to perform in accordance with the Contract Documents, including the Sustainability Plan.

W Mason is an partner with the law firm Fox Rothschild LLP. W is Board Certified in Construction Law by the Florida Bar Association. W focuses his practice on construction and business litigation. You can reach W at (561) 804-4432 or wmason@foxrothschild.com.

The 2017 revisions to the A201 improves the Contractor’s ability to request and obtain financial information from the owner throughout the project. On most projects, Owner’s typically create a single purpose legal entity, usually an LLC, that owns the real property where construction takes place. The legal entity typically enters into the construction contract with the Contractor. The A201 recognizes that the entity entering in to the construction Contract on behalf of the Owner most likely has little or no assets. As such, it provides the Contractor with the ability to request reasonable evidence of the Owner’s ability to pay.

The 2017 revisions of Section 2.2 continues to allow the Contractor to request reasonable evidence (1) prior to commencement, (2) after failure to make a timely payment, (3) after a material change in the work that materially affected the contract sum, or (4) after identification of a reasonable concern over the Owner’s ability to pay. While the 2007 A201 did not impose an express timeline on the Owner or a consequence for the Owner’s failure to provide the reasonable evidence, the 2017 revision requires the Owner to provide the reasonable evidence within 14 days after the Contractor’s request. If the Owner fails to provide reasonable evidence within 14 days, the Contractor may stop work. If the request is made due to a change materially affecting the Contract sum, the Contractor may only stop the work related to the change. Significantly, the 2017 A201 expressly provides that the contract time and sum shall be increased by the amount of the Contractor’s reasonable costs and delay, plus interest. Given that Section 2.2 of the 2017 A201 has more “teeth” in favor of the Contractor, practitioners representing owners may want to consider revisions to Section 2.2 accordingly.

W Mason is an partner with the law firm Fox Rothschild LLP. W practices in Fox Rothschild’s Litigation department in West Palm Beach, Florida. W is Board Certified in Construction Law by the Florida Bar Association. W focuses his practice on construction and commercial litigation throughout Florida. You can reach W at (561) 804-4432 or wmason@foxrothschild.com.

Because of advancements in the use of digital technology in the administration of construction contracts, the 2017 AIA documents now default to the AIA’s Digital Data Use and Transmission protocol established in 2013 as set forth in the E203. Section 1.8 of the A201 now provides that the contractor’s reliance on BIM modeling will be at its “sole risk and without liability of any other party” unless the parties use AIA E203 and G202 BIM Modeling documents. Clearly, this provision allocates significant risk to the contractor. Contractors’ and their attorneys should consider modifying this language if the AIA digital transmission documents are not agreed to and utilized by the parties.

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W Mason is an partner with the law firm Fox Rothschild LLP. W practices in Fox Rothschild’s Litigation department in West Palm Beach, Florida. W is Board Certified in Construction Law by the Florida Bar Association. W focuses his practice on construction and commercial litigation throughout Florida. You can reach W at (561) 804-4432 or wmason@foxrothschild.com.