An AIA construction management agreement is a legal contract between a construction manager and a project owner. It outlines the scope of work, responsibilities, and compensation for the construction manager. AIA, or the American Institute of Architects, has developed standard construction management agreements that are widely used in the industry.
A construction management agreement is typically used in large construction projects where there are multiple contractors and subcontractors involved. The construction manager acts as the owner`s representative and oversees the entire construction process, from planning and design to completion. The construction manager is responsible for ensuring that the project is completed on time, within budget, and to the owner`s specifications.
The AIA construction management agreement is divided into several sections, each detailing different aspects of the contract. The first section outlines the scope of work, including the construction manager`s duties and responsibilities. This section also includes a detailed description of the project and any specific requirements or goals that the owner has.
The next section of the agreement covers compensation for the construction manager. This includes the fee structure, payment schedule, and any additional expenses that may be incurred during the project. It is important for both the construction manager and the owner to carefully review this section to ensure that all costs are accounted for.
Another important section of the AIA construction management agreement covers liability and insurance. This section outlines the insurance requirements for the project and specifies who is responsible for any damages or injuries that may occur during the construction process. Additionally, the agreement may include provisions for indemnification, which protects both the construction manager and the owner from legal action.
The AIA construction management agreement also includes sections on dispute resolution and termination. These sections outline the process for resolving any conflicts that may arise during the construction process and specify the conditions under which the contract can be terminated.
Overall, an AIA construction management agreement is essential for any large construction project. It provides a clear framework for the relationship between the construction manager and the owner, ensuring that everyone is on the same page from the outset. By carefully reviewing and negotiating the terms of the agreement, both parties can minimize risk and ensure a successful outcome for the project.