Surety Bond Quarterly - Summer 2015 - 32

Feature

The

AIA
Describes
UPDATED AND EXPANDED
BY SUSAN VAN BELL

DESIGN-BUILD DOCUMENTS FAMILY

IN 2014, THE American Institute of
Architects (AIA) released revised versions of its 2004 Design-Build family
of documents. Subsequently, the AIA
expanded that family with a new residential design-build agreement and
payment application forms for use in
design-build projects.
Design-build is a process in which
the owner contracts directly with
one entity to provide both the design
and construction of the project. The
design-builder may be a design-build
entity, an architect, construction contractor, real estate developer, or any
person or entity legally permitted
to do business as a design-builder
in the jurisdiction where the project
is located.
The AIA's design-build documents
are flexible with respect to the type
of entity that performs the designbuild services. Along with the owner/
design-builder agreement (A141™2014), there is a design-builder/contractor agreement (A142™-2014) and
a design-builder/architect agreement
(B143™-2014), either of which may
be used, depending on what services are performed by the designbuilder. Other agreements in the 2014
design-build family include owner/
consultant (C141™-2014), architect/
consultant (C441™-2014), and contractor/subcontractor (A441™-2014)
agreements. This article focuses
primarily on the A141 owner/designbuilder agreement.
The AIA made substantial changes
in the 2014 design-build documents
involving format and substance,

32

including incorporation of the general
conditions into the prime agreement
between the owner and the designbuilder, an expanded exhibit for
insurance and bonds, a sustainable
projects exhibit, and a more robust
design phase.
The 2004 owner/design-builder
agreement only required the designbuilder to provide minimal design
documents prior to preparation of the
construction documents. The 2014
owner/design-builder agreement sets
forth a detailed process for the preconstruction phase of the project.
This more robust process is intended
to encourage owners to better consider their project requirements and
to enhance collaboration between
the owner and design-builder, early
on in the process.
The 2014 owner/design-builder
agreement requires the owner,
upon engaging the design-builder,
to provide owner's criteria, such as
the owner's program, design requirements, and sustainable objectives.
Once established, the owner's criteria
become part of the design-build documents and can only be changed by
mutual agreement in writing.
The design-builder prepares a preliminary evaluation of the owner's
criteria, reviews it with the owner,
and then develops a preliminary
design. After the preliminary design
is approved by the owner, the designbuilder develops a proposal that
includes the proposed contract sum
and contract time. If the owner agrees
to the proposal, the Design-Build

SURETY BOND QUARTERLY | SUMMER 2015

Amendment (Exhibit A) is executed.
This includes a compensation section with check boxes for selection
of stipulated sum or cost of the work
plus the design-builder's fee, with
or without a guaranteed maximum
price, as the design-builder's compensation for work performed after
execution of the amendment.
Compensation for work performed
by the design-builder prior to execution of the design-build amendment is
set forth in the owner/design-builder
agreement. The design-builder is
compensated for work performed
prior to execution of the design-build
amendment even if the parties do not
reach an agreement on the designbuilder's proposal and the amendment is not executed.
Construction services are provided
in accordance with the terms and
conditions set forth in the owner/
design-builder agreement. Unlike
the 2004 document, which has a
separate exhibit for the terms and
conditions, A141-2014 contains the
terms and conditions in the body of
the agreement and they have been
updated to be more consistent with
those in the A201-2007 (conventional)
family of documents. For example,
rather than mediation followed by
mandatory arbitration, as in the 2004
document, the 2014 document now
contains a checkbox section in which
the parties select the method of binding dispute resolution between arbitration, litigation in court, or "other."
The
2014
Insurance
and
Bonds exhibit (Exhibit B) is more



Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2015

NASBP Upcoming Meetings & Events
2015-2016 NASBP Executive Committee
From the CEO - There is Poetry in Surety Claims, Surely
Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Profile: President Susan Hecker
Developing Your Leadership Vision
Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
An Introduction to Probate Bonds
Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
The AIA Describes Updated and Expanded Design-Build Documents Family
Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover1
Surety Bond Quarterly - Summer 2015 - cover2
Surety Bond Quarterly - Summer 2015 - 3
Surety Bond Quarterly - Summer 2015 - 4
Surety Bond Quarterly - Summer 2015 - 5
Surety Bond Quarterly - Summer 2015 - 6
Surety Bond Quarterly - Summer 2015 - 2015-2016 NASBP Executive Committee
Surety Bond Quarterly - Summer 2015 - From the CEO - There is Poetry in Surety Claims, Surely
Surety Bond Quarterly - Summer 2015 - 9
Surety Bond Quarterly - Summer 2015 - Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Surety Bond Quarterly - Summer 2015 - 11
Surety Bond Quarterly - Summer 2015 - Profile: President Susan Hecker
Surety Bond Quarterly - Summer 2015 - 13
Surety Bond Quarterly - Summer 2015 - Developing Your Leadership Vision
Surety Bond Quarterly - Summer 2015 - 15
Surety Bond Quarterly - Summer 2015 - Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
Surety Bond Quarterly - Summer 2015 - 17
Surety Bond Quarterly - Summer 2015 - 18
Surety Bond Quarterly - Summer 2015 - 19
Surety Bond Quarterly - Summer 2015 - 20
Surety Bond Quarterly - Summer 2015 - 21
Surety Bond Quarterly - Summer 2015 - An Introduction to Probate Bonds
Surety Bond Quarterly - Summer 2015 - 23
Surety Bond Quarterly - Summer 2015 - 24
Surety Bond Quarterly - Summer 2015 - 25
Surety Bond Quarterly - Summer 2015 - 26
Surety Bond Quarterly - Summer 2015 - Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
Surety Bond Quarterly - Summer 2015 - 28
Surety Bond Quarterly - Summer 2015 - 29
Surety Bond Quarterly - Summer 2015 - NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
Surety Bond Quarterly - Summer 2015 - 31
Surety Bond Quarterly - Summer 2015 - The AIA Describes Updated and Expanded Design-Build Documents Family
Surety Bond Quarterly - Summer 2015 - 33
Surety Bond Quarterly - Summer 2015 - Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
Surety Bond Quarterly - Summer 2015 - 35
Surety Bond Quarterly - Summer 2015 - NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Surety Bond Quarterly - Summer 2015 - 37
Surety Bond Quarterly - Summer 2015 - Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover3
Surety Bond Quarterly - Summer 2015 - cover4
Surety Bond Quarterly - Summer 2015 - outsert1
Surety Bond Quarterly - Summer 2015 - outsert2
Surety Bond Quarterly - Summer 2015 - 43
Surety Bond Quarterly - Summer 2015 - 44
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