In an article published on June 13 in Commercial Property Executive, Dan Kapner discusses the top provisions owners using the AIA Contract should consider revising in contract negotiations.
When entering into a construction contract, owners will increase the likelihood of a successful project by understanding the key risks and allocating them to the contractor and other project participants. “It is thus essential that every owner using the AIA Contract critically analyze the allocation of key risks in the form contract and revise it where necessary to ensure it is sufficiently protected,” Kapner explains.
Among tips discussed, Kapner shares that owners should incorporate a reasonable provision that will obligate the contractor to indemnify and defend the owner and its lenders from any lien claims, and bond off or otherwise discharge subcontractor liens whether or not the contractor believes the claim is valid.
Additionally, he shares that most construction disputes involve delay claims and owners should require an expanded delay provision to reduce the likelihood of disputes. Kapner states, “Owners should also consider whether their interests are being served by the AIA Contract’s bolstering of the architect’s authority in this and other provisions throughout the AIA Contract, and consider shifting such authority to the owner.”
For the full article, click here.