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📋 AIA Contract Walkthrough

AIA contracts are the most common standard construction contracts. Understanding them helps you protect your rights and avoid costly mistakes.

What are AIA Contracts?​

AIA (American Institute of Architects) publishes standard construction contract documents used throughout the industry.

Common AIA contracts:

  • A101 - Owner-Contractor Agreement (Stipulated Sum)
  • A102 - Owner-Contractor Agreement (Cost Plus)
  • A201 - General Conditions
  • A401 - Contractor-Subcontractor Agreement
  • G702/G703 - Application and Certificate for Payment

Why AIA Contracts Matter​

Industry Standard​

  • Widely used - Most common standard contracts
  • Well-tested - Decades of use and interpretation
  • Balanced - Generally fair to all parties
  • Familiar - Most contractors know them

Key Benefits​

  • Clarity - Clear terms and conditions
  • Protection - Protects all parties
  • Dispute resolution - Built-in procedures
  • Standardization - Consistent across projects

Key AIA Contract Documents​

A101 - Owner-Contractor Agreement (Stipulated Sum)​

Used for: Fixed-price contracts

Key sections:

  • Contract sum
  • Payment terms
  • Schedule
  • Change orders
  • Substantial completion

A102 - Owner-Contractor Agreement (Cost Plus)​

Used for: Cost-plus contracts

Key sections:

  • Cost definition
  • Fee structure
  • Guaranteed maximum price (GMP)
  • Reimbursable costs
  • Fee calculation

A201 - General Conditions​

The "rules of the game" - Applies to most AIA projects

Key sections:

  • Article 1 - Definitions
  • Article 2 - Owner's responsibilities
  • Article 3 - Contractor's responsibilities
  • Article 4 - Architect's responsibilities
  • Article 5 - Subcontractors
  • Article 6 - Construction by owner
  • Article 7 - Changes in work
  • Article 8 - Time
  • Article 9 - Payments
  • Article 10 - Protection of persons and property
  • Article 11 - Insurance and bonds
  • Article 12 - Uncovering and correction of work
  • Article 13 - Miscellaneous provisions
  • Article 14 - Termination or suspension
  • Article 15 - Claims and disputes

Critical Contract Clauses​

Article 9 - Payments​

Progress payments:

  • Application - Submit G702/G703 monthly
  • Review period - Architect reviews within 7 days
  • Payment - Owner pays within 7 days of approval
  • Retainage - Typically 10% until substantial completion

Final payment:

  • Application - Submit final application
  • Lien waivers - Provide final lien waivers
  • Payment - Owner pays within 30 days

Key points:

  • Timely applications - Submit on time
  • Complete applications - Include all required docs
  • Follow procedures - Follow contract procedures exactly
  • Document everything - Keep records

Article 7 - Changes in Work​

Change order process:

  1. Owner requests change - Written or oral
  2. Contractor proposes - Price and time
  3. Architect reviews - Approves or rejects
  4. Owner approves - Signs change order
  5. Work performed - After approval

Key points:

  • Get approval first - Don't work without approval
  • Document requests - Written is best
  • Price accurately - Include all costs
  • Include time - Request time extension if needed

Article 8 - Time​

Schedule:

  • Contract time - Specified in contract
  • Extensions - For delays beyond contractor's control
  • Liquidated damages - If specified
  • Substantial completion - When project substantially complete

Key points:

  • Track delays - Document all delays
  • Request extensions - In writing, timely
  • Substantial completion - Know the definition
  • Final completion - Punch list completion

Article 11 - Insurance and Bonds​

Required insurance:

  • General liability - Typically $1M/$2M
  • Workers' compensation - As required by law
  • Builder's risk - If required
  • Professional liability - If required

Required bonds:

  • Performance bond - If required
  • Payment bond - If required

Key points:

  • Maintain coverage - Keep insurance current
  • Provide certificates - COIs to owner
  • Additional insured - Add owner if required
  • Bonding capacity - Ensure adequate capacity

Article 12 - Uncovering and Correction of Work​

Uncovering work:

  • Owner/architect can require uncovering
  • Contractor pays if work defective
  • Owner pays if work acceptable

Correction of work:

  • Contractor must correct defective work
  • At contractor's expense
  • Within reasonable time

Key points:

  • Quality work - Do it right the first time
  • Document inspections - Keep records
  • Correct promptly - Fix issues quickly

Article 14 - Termination or Suspension​

Owner can terminate:

  • For cause - Contractor default
  • For convenience - Without cause (pays contractor)

Contractor can terminate:

  • For cause - Owner default
  • Non-payment - After proper notice

Key points:

  • Know your rights - Understand termination clauses
  • Follow procedures - Give proper notice
  • Document defaults - Keep records
  • Get paid - For work performed

Article 15 - Claims and Disputes​

Claims process:

  1. Initial decision - Architect makes initial decision
  2. Mediation - If parties disagree
  3. Arbitration - If mediation fails (if required)
  4. Litigation - If no arbitration clause

Key points:

  • Follow procedures - Follow claim procedures exactly
  • Timely notice - Give notice within time limits
  • Document claims - Support with documentation
  • Consider mediation - Often resolves disputes

A401 - Contractor-Subcontractor Agreement​

Used for: Contracts with subcontractors

Key sections:

  • Scope of work - What sub performs
  • Payment terms - When sub gets paid
  • Flow-down provisions - Owner contract terms apply
  • Retainage - Withheld retention
  • Backcharges - When contractor can backcharge

Key points:

  • Clear scope - Define scope clearly
  • Payment terms - When and how paid
  • Flow-down - Owner contract terms apply
  • Protect yourself - Include protective clauses

G702/G703 - Application for Payment​

G702 - Application:

  • Application form
  • Amount requested
  • Retainage
  • Previous payments
  • Amount due

G703 - Schedule of Values:

  • Breakdown of work
  • Completed work
  • Stored materials
  • Total value

Key points:

  • Complete accurately - Fill out completely
  • Support with docs - Include required documents
  • Submit on time - Meet deadlines
  • Track carefully - Keep records

Common Mistakes​

MistakeProblemSolution
Not reading contractDon't know termsRead entire contract
Missing deadlinesLose rightsCalendar all deadlines
Working without approvalNo paymentGet approval first
Poor documentationCan't prove claimsDocument everything
Ignoring proceduresClaims deniedFollow procedures exactly

Best Practices​

Before Signing​

  • Read entire contract - Don't skip sections
  • Understand terms - Ask questions
  • Review modifications - Check for changes
  • Get legal review - If significant contract
  • Negotiate - If terms unfavorable

During Project​

  • Follow procedures - Exactly as specified
  • Document everything - Keep records
  • Meet deadlines - Calendar all deadlines
  • Communicate - In writing when important
  • Track changes - Document all changes

For Claims​

  • Give timely notice - Within time limits
  • Follow procedures - Exactly as specified
  • Document thoroughly - Support with evidence
  • Be professional - Maintain relationships

Contract Modifications​

AIA contracts can be modified:

  • Supplementary conditions - Modify general conditions
  • Addenda - Changes before contract signing
  • Change orders - Changes after contract signing

Key points:

  • Review modifications - Understand changes
  • Negotiate - If modifications unfavorable
  • Document - Keep all contract documents
  • Consistency - Ensure modifications consistent
Read Before You Sign

AIA contracts are generally fair, but you still need to understand what you're signing. Read the entire contract, understand the terms, and get legal review for significant contracts.

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