Surety Bond Quarterly - Summer 2017 - 25

companies that are adequately capitalized and that the parties will be
protected as they intended.
New Sustainable
Projects Exhibit
In addition to the new Insurance
and Bonds exhibit, the 2017 release
will also include the new E204,
Sustainable Projects Exhibit. As the
title suggests, E204 sets forth the
roles and responsibilities for each
project participant as they relate
to unique elements of sustainable
design and construction to be incorporated in the project. Once the
owner determines that the project
will involve a sustainable objective,
E204™-2017 is incorporated into the
owner-architect and owner-contractor agreements, and, as appropriate, into each of the other project
agreements. In this way, the project
participants obtain the benefit of a
detailed and coordinated statement
of each party's sustainable design
and construction responsibilities.
Use of Digital
Information and BIM
The 2017 documents contain a number of new provisions related to digital
information and Building Information
Modeling (BIM). There can be significant risk and responsibility associated
with the exchange of project information in digital format. This is particularly true when it comes to the use of
BIM. When using BIM on a project, it
is imperative that requirements for
the various elements of the Model, at
various stages of the project, be well
documented, along with the allowed
uses of, and reliance on, the Model.
Accordingly, the key 2017 ownercontractor and owner-architect agreements expressly require the use of
AIA Document E203™-2013 to establish protocols for the development,
use, transmission, and exchange of
digital data. The 2017 documents further provide that any use of, or reliance on, all or a portion of information
contained in a BIM model, without
first having established and set forth
the necessary protocols, is at the
using or relying party's own risk and

without liability to any other project
participant. In addition, revisions to
section 3.11 of A201™-2017 clarify
that the contractor may maintain
contract documents, change orders,
construction change directives, and
other modifications at the site in
electronic format. A201™-2017 also
now addresses the issue of notice in
electronic format.
"Notice" Defined
"Notice" is now a defined term in
2017 documents. A201-2017 requires
that Notice be provided in writing to
the designated representative of the
party to whom the notice is addressed
and served in person, by mail, by courier, or by electronic transmission (if
a method for electronic transmission
is set forth in the agreement). One
caveat pertains to notice of claims,
which may only be served by certified or registered mail, or by courier
providing proof of delivery.
Approach Change on
Means & Methods
The AIA Contract Documents have
long provided that the contractor is
solely responsible for, and has control
over, construction means, methods,
techniques, sequences, and procedures. However, the 2007 documents contemplated that the owner
or architect might, on rare occasion,
direct the contractor to proceed with
the work as set forth in the contract
documents, even if the contractor
was concerned that this might impact
job safety. In that case the owner
assumed responsibility for any loss
or damage. A201-2017 takes a slightly
different approach. The contractor
remains solely responsible for, and
has control over, construction means,
methods, techniques, sequences,
and procedures. If the contractor
believes that the contract documents
give specific instructions concerning
construction means, methods, techniques, sequences, and procedures,
and if the contractor determines that
the means, methods, techniques,
sequences, and procedures might
not be safe, the contractor is to give
notice to the owner and architect

and propose alternative means,
methods, techniques, sequences,
or procedures. The architect is to
then evaluate the proposed alternative solely for conformance with the
design intent for the completed construction. Unless the architect objects
to the contractor's proposed alternative, the contractor is to perform
the work using the alternatives that
it proposed.
Termination Fee Fill Point
Since 1997 the AIA Contract Documents have allowed the owner to
terminate the owner-contractor and
owner-architect agreements for the
owner's convenience. Based on the
experience of the AIA Documents
Committee members, and counsel
to the AIA Documents Committee
and input from liaisons, it was determined that owners were often striking the contract provisions allowing
for the recovery of anticipated overhead and profit on unperformed
work. Accordingly, the 2017 ownercontractor, owner-architect, and
architect-consultant agreements
eliminate automatic entitlement to
lost overhead and profit on unperformed work or services. The new
agreement forms contain a fill point
to prompt the parties to discuss and
insert an appropriate "Termination
Fee." The A401™-2017 subcontract
agreement still allows for recovery
of lost overhead and profit by the
subcontractor. Those costs would be
recoverable from the owner as part of
the "costs incurred by reason of the
termination, including costs attributable to termination of subcontracts."
Similarly, any termination fee to be
paid by the architect to its consultants would be passed through to the
owner as part of the cost to terminate
the consultant's agreements.
Contract Dates
The AIA Documents Committee substantially revised the provisions in
the owner-contractor agreements
dealing with the date of commencement and substantial completion
of the work. The edits, however, do
not result in significant substantive

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25


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Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2017

NASBP Upcoming Meetings & Events
2017–2018 Executive Committee
From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Howard Cowan—Building on a Solid Foundation
Mitigating the Hidden Risks in the “New Normal” Construction Environment
Acting Director of the U.S. SBA Office of Surety Guarantees
Drones Take Flight in the Construction Industry
2017 AIA Contract Documents: Selected Key Changes
NASBP to Release Continuing Education Course: Joint Ventures in Construction
How Can Construction Contractors Expedite Payment on Federal Contracts?
Insurtech for Surety: The Future Is Closer than You Think!
Index to Advertisers
Surety Bond Quarterly - Summer 2017 - Intro
Surety Bond Quarterly - Summer 2017 - cover1
Surety Bond Quarterly - Summer 2017 - cover2
Surety Bond Quarterly - Summer 2017 - 3
Surety Bond Quarterly - Summer 2017 - 4
Surety Bond Quarterly - Summer 2017 - 5
Surety Bond Quarterly - Summer 2017 - 6
Surety Bond Quarterly - Summer 2017 - 2017–2018 Executive Committee
Surety Bond Quarterly - Summer 2017 - 8
Surety Bond Quarterly - Summer 2017 - From the CEO: Bringing Summer Heat: A Rundown of “Hot” Stuff in the Evolving World Surrounding Surety
Surety Bond Quarterly - Summer 2017 - Howard Cowan—Building on a Solid Foundation
Surety Bond Quarterly - Summer 2017 - 11
Surety Bond Quarterly - Summer 2017 - Mitigating the Hidden Risks in the “New Normal” Construction Environment
Surety Bond Quarterly - Summer 2017 - 13
Surety Bond Quarterly - Summer 2017 - 14
Surety Bond Quarterly - Summer 2017 - 15
Surety Bond Quarterly - Summer 2017 - 16
Surety Bond Quarterly - Summer 2017 - 17
Surety Bond Quarterly - Summer 2017 - 18
Surety Bond Quarterly - Summer 2017 - 19
Surety Bond Quarterly - Summer 2017 - Acting Director of the U.S. SBA Office of Surety Guarantees
Surety Bond Quarterly - Summer 2017 - 21
Surety Bond Quarterly - Summer 2017 - Drones Take Flight in the Construction Industry
Surety Bond Quarterly - Summer 2017 - 23
Surety Bond Quarterly - Summer 2017 - 2017 AIA Contract Documents: Selected Key Changes
Surety Bond Quarterly - Summer 2017 - 25
Surety Bond Quarterly - Summer 2017 - 26
Surety Bond Quarterly - Summer 2017 - NASBP to Release Continuing Education Course: Joint Ventures in Construction
Surety Bond Quarterly - Summer 2017 - How Can Construction Contractors Expedite Payment on Federal Contracts?
Surety Bond Quarterly - Summer 2017 - 29
Surety Bond Quarterly - Summer 2017 - 30
Surety Bond Quarterly - Summer 2017 - 31
Surety Bond Quarterly - Summer 2017 - Insurtech for Surety: The Future Is Closer than You Think!
Surety Bond Quarterly - Summer 2017 - 33
Surety Bond Quarterly - Summer 2017 - Index to Advertisers
Surety Bond Quarterly - Summer 2017 - cover3
Surety Bond Quarterly - Summer 2017 - cover4
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