Cooking Up Contracts: The AIA Agreement Recipe for Owners and Contractors
Cooking Up Contracts: The AIA Agreement Recipe for Owners and Contractors

You know when you're following instructions on a recipe and think you have all the right ingredients and combine them just as you're supposed to - and yet the end result is still a gooey mess of an appetizer that tastes like dish soap? Yeah, me neither. Except, I do remember that green pepper cranberry hors d'oeuvre incident from my last Christmas Eve dinner; yeah, there was a very nice slot at the invitation to not bring anything. While I'm not sure anyone else noticed, what I should have noticed was that although my appetizer wasn't successful, it never was supposed to be. I mean, that's what everyone told me when I asked if they liked it - "Umm, that's an interesting hors d'oeuvre but green peppers and cranberries don't go together." Or do they? Well, they do after plenty of practice and a lot of tweaking - and this is where parsing through AIA contracts becomes relevant.

What Is An AIA Agreement Between Owner and Contractor

Most of us have heard the acronym, but how many of us know what it really means? Going back to my recipe analogy, AIA stands for American Institute of Architects; in short, it's a set of guidelines and standards for contracting between owners and contractors for all kinds of different projects. Hidden away in the minutia of each AIA agreement between owner and contractor is a huge set of rules that let everyone know what their duties are, how open communications should occur, and what exactly happens when things don't go as planned. And I don't just mean when an architect's dreams of those green pepper cranberry morsels are completely annihilated by the pillowy dough of the wonton wrappers, either. I'm talking about when the project plan is way-off base the minute construction begins. What happens when the walls aren't where they were supposed to be? What if the windows don't fit? What if the power goes out... and stays out... for weeks on end? What if the city decides to demolish that building you just finished? The AIA agreement between owner and contractor tells you what to do when these questions arise; and if they don't, the fallout, AIA says, is on the toes of the contractor. In other words, while contract disputes will be processed through the course of law, there is an embedded, ad hoc dispute resolution mechanism built into each of the AIA agreements that lets owners and contractors settle issues before they even have to collapse into chambers of the court.

So, What Are Those Components of An AIA Contract

Now we get to the recipe part. The AIA agreement between owner and contractor has a lot of different containers- I'm talking about ingredients in liquid ounces, ground beef in pounds, and your leftover 4-day old pizza in slices - and of course, they're all mixed together. But are they? 547 forms? Okay, maybe not all of them are used, but you get the picture. What is the applicable component that you use based on the project, the budget, the time frame, the scope and scale of work, and how it relates to the owner and contractor? Clearly, if it's the demolition of that building, you'll want to use A-101 or B-133; there's no reason to ask for a minor home remodel using A-101 - no one has time for that. But wait - what's that funny aftertaste?! I mean, we've followed the recipe correctly, but something isn't quite right. Tender is the hand that stirs (an AIA agreement between owner and contractor), and tender is what happens next. This is your tendering process or proposal, which outlines formally what you are going to do and how you're going to do it. Then, the good part: Awarding. With enough mixing and melding of tender pieces, MSRP-ing (market price adjustments according to inflation, etc.) and getting the go ahead, the project continues. Then, once it's all built to the satisfaction (or not) of the owner, we move to modification - another chance to tweak the recipe by changing the time frame, budget, or the like. Done with that too? Good for you! Of course, there are all sorts of other elements to balancing an AIA agreement between owner and contractor, but these are the basics. Honestly, the contract is much like following your carefully crafted hors d'oeuvres recipe to a T - 1 false move, and it's dish soap or worse, for dinner. Or, in this case, contract negotiations. That's it!