Cornerstone - Fall 2017 - 17

owner's ability to pay, or (3) a change materially alters the contract price. But when
those scenarios occur, the revised terms
allow the contractor to stop work if the
owner fails to provide proof of finances
within 14 days. Also, the owner may now
designate this financial information as confidential and prohibit disclosure except for
allowed purposes.
Claims (Article 15): The revised A201
has a variety of modifications to the claims
provisions. For instance, an owner can now
impose liquidated damages without making a formal claim. In addition, the revised
A201 now explicitly provides for certain
disagreements to fall under the contractual
claims process. For example, if a contractor
disputes an owner's right to carry out the
contractor's work (after default) or payment to a replacement contractor related
to that right, the contractor may file a claim
under Article 15. The contractor may also
pursue an Article 15 claim if it disagrees
with a time adjustment issued pursuant to a
change in the scope of work. Further, if the
contractor disputes the architect's decision
to withhold payments, the contractor may
immediately submit an Article 15 claim.
Warranty: The revised A201 requires
all warranties to be issued in the name
of the owner and to commence upon
substantial completion.
Contractor's Construction Schedule:
While the prior A201 only required a schedule that fell within the specified construction timeline, the new version requires
more detail. The schedule must contain:
(1) date of commencement, date of substantial completion, and interim milestone
dates, (2) an apportionment of work by
activity, and (3) and time required to complete each portion of work.
Minor Changes in Work: The revised
A201 allows the architect to order minor
changes in work. If the contractor believes
the change will impact the contract's sum
or time, the contractor must not proceed
with the work and must notify the architect. If the contractor commences work
without giving prior notice to the architect,
the contractor waives any right to modify
the contract sum or time.
Contractor Indemnifies Against Lien:
The revised A201 includes a new provision in which the contractor agrees to
Fall 2017

indemnify and defend the owner against
any downstream liens or claims, provided that the owner has properly paid
the contractor.
Choice of Law: Like past versions, the
revised A201 requires that the contract
be governed by the law in the jurisdiction
where the project is located. The A201 goes
a step further and specifically excludes that
jurisdiction's choice of law rules.
Termination: The revised A201 still
allows the owner to terminate the contract for convenience. However, like in the
revised A101 and A102, the new version
anticipates a termination for convenience
fee payable to the contractor. This allows
the parties to negotiate the amount of
the termination for convenience fee and
include it in this section.
Arbitration: The revised A201 requires
that arbitration be conducted in the place
where the project is located unless the parties agree otherwise.
Insurance and Bonds: Similar to the
A101 and A102, the revised A201 now
includes a separate exhibit to allow

Houston
281 .230.7500

*

the parties to more specifically detail
the project's bonding and insurance
requirements. The insurance exhibit is a
significant departure from the previous
AIA documents and the revisions are too
numerous to explore here. In light of the
significant changes made, a contracting
party should review this new exhibit in
detail with its insurance carrier prior to
executing the contract.
Careful attention should be paid to
the revised AIA forms to ensure a successful project, and contracting parties should certainly review them with
counsel and insurance carriers. For more
information on the impact of the latest
revisions, contractors, owners and subcontractors are advised to consult with
their attorney.
■
Board certified in construction law by the
Texas Board of Legal Specialization, Tim Ross
has a practice focused on the transactional
and dispute resolution aspects of construction law. Ross serves on the AGC Houston
Government Affairs Committee.

Dallas-Ft. Worth
21 4.9 05.99 50

*

Austin

51 2.746 .2247

BUILDING SOLID SOLUTIONS SINCE 1980

874756_TAS.indd 1

www.tasconcrete.com

17

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Table of Contents for the Digital Edition of Cornerstone - Fall 2017

From the Chairman of the Board, James Bryant
From the President/CEO, Jerry Nevlud
Houston-Area Construction Companies Team Up to Promote National Safety Stand-Down
OSHA Launches Application to Electronically Submit Injury, Illness Data
Midyear Safety Meeting and Networking Breakfast Recognizes Excellence in Safety
The Revised AIA Prime Contract
New Technologies Present New Liabilities
AGC Houston Members Head to Pacific Northwest for State Convention
Menil Drawing Institute Gets Ready to Open Its Doors
Member News
Index of Advertisers/Advertiser.com
Cornerstone - Fall 2017 - Intro
Cornerstone - Fall 2017 - ebelly1
Cornerstone - Fall 2017 - ebelly2
Cornerstone - Fall 2017 - cover1
Cornerstone - Fall 2017 - cover2
Cornerstone - Fall 2017 - 3
Cornerstone - Fall 2017 - 4
Cornerstone - Fall 2017 - 5
Cornerstone - Fall 2017 - From the Chairman of the Board, James Bryant
Cornerstone - Fall 2017 - 7
Cornerstone - Fall 2017 - 8
Cornerstone - Fall 2017 - From the President/CEO, Jerry Nevlud
Cornerstone - Fall 2017 - Houston-Area Construction Companies Team Up to Promote National Safety Stand-Down
Cornerstone - Fall 2017 - 11
Cornerstone - Fall 2017 - 12
Cornerstone - Fall 2017 - OSHA Launches Application to Electronically Submit Injury, Illness Data
Cornerstone - Fall 2017 - Midyear Safety Meeting and Networking Breakfast Recognizes Excellence in Safety
Cornerstone - Fall 2017 - 15
Cornerstone - Fall 2017 - The Revised AIA Prime Contract
Cornerstone - Fall 2017 - 17
Cornerstone - Fall 2017 - 18
Cornerstone - Fall 2017 - New Technologies Present New Liabilities
Cornerstone - Fall 2017 - AGC Houston Members Head to Pacific Northwest for State Convention
Cornerstone - Fall 2017 - 21
Cornerstone - Fall 2017 - 22
Cornerstone - Fall 2017 - Menil Drawing Institute Gets Ready to Open Its Doors
Cornerstone - Fall 2017 - Member News
Cornerstone - Fall 2017 - 25
Cornerstone - Fall 2017 - Index of Advertisers/Advertiser.com
Cornerstone - Fall 2017 - cover3
Cornerstone - Fall 2017 - cover4
https://www.nxtbook.com/naylor/HCAQ/HCAQ0118
https://www.nxtbook.com/naylor/HCAQ/HCAQ0417
https://www.nxtbook.com/naylor/HCAQ/HCAQ0317
https://www.nxtbook.com/naylor/HCAQ/HCAQ0217
https://www.nxtbook.com/naylor/HCAQ/HCAQ0117
https://www.nxtbook.com/naylor/HCAQ/HCAQ0416
https://www.nxtbook.com/naylor/HCAQ/HCAQ0316
https://www.nxtbook.com/naylor/HCAQ/HCAQ0216
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https://www.nxtbook.com/naylor/HCAQ/HCAQ0415
https://www.nxtbook.com/naylor/HCAQ/HCAQ0315
https://www.nxtbook.com/naylor/HCAQ/HCAQ0215
https://www.nxtbook.com/naylor/HCAQ/HCAQ0115
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