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Matched Legal Cases: ['§ 2', '§ 2', '§ 4', '§ 4', '§ 4', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 6', '§ 6', '§ 6', '§ 6', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 8', '§ 9', '§ 9', '§ 10', '§ 10', '§ 10', '§ 10', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 13', '§ 13', '§ 14', '§ 14', '§ 14', '§ 14', '§ 15', '§ 15', '§ 15', '§ 15', '§ 15', '§ 15', '§ 16', '§ 16', '§ 16', '§ 16', '§ 16', '§ 16', '§ 16', '§ 16']

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AIA Document A102 ­ 2007
Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
Wilmer Cutler Pickering Hale and Dorr LLP ACC Real Estate Committee Presentation - February 24, 2010 AGREEMENT made as of the day of (In words, indicate day, month and year) BETWEEN the Owner: (Name, address and other information) in the year
ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. This document is not intended for use in competitive bidding. AIA Document A201TM­2007, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified.
and the Contractor: (Name, address and other information)
for the following Project: (Name, location, and detailed description)
The Architect: (Name, address and other information)
The Owner and Contractor agree as follows.
ELECTRONIC COPYING of any portion of this AIA® Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document.
AIA Document A102TM ­ 2007 (formerly A111TM ­ 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 09:06:37 on 02/04/2009 under Order No.1000356280_1 which expires on 5/13/2009, and is not for resale. User Notes: Error! Unknown document property name.Error! Unknown document property name. (4288792380)
TABLE OF ARTICLES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 THE CONTRACT DOCUMENTS THE WORK OF THIS CONTRACT RELATIONSHIP OF THE PARTIES DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION CONTRACT SUM CHANGES IN THE WORK COSTS TO BE REIMBURSED COSTS NOT TO BE REIMBURSED DISCOUNTS, REBATES AND REFUNDS SUBCONTRACTS AND OTHER AGREEMENTS ACCOUNTING RECORDS PAYMENTS DISPUTE RESOLUTION TERMINATION OR SUSPENSION MISCELLANEOUS PROVISIONS ENUMERATION OF CONTRACT DOCUMENTS INSURANCE AND BONDS
ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. If anything in the other Contract Documents, other than a Modification, is inconsistent with this Agreement, this Agreement shall govern. ARTICLE 2 THE WORK OF THIS CONTRACT § 2.1 The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others. § 2.2 The Contractor's Project Team will include the individuals listed on Schedule 2.2 attached hereto and such other assistants, technical, administrative and other personnel as are required to carry out the Work effectively, to maintain the progress of the Work in accordance with the requirements of the Project Schedule, and to satisfy all obligations of the Contractor under the Contract Documents, subject to the Owner's written approval. No change in the composition of the Project Team, including, without limitation, reassignment and/or removal of any Project Team member, shall be made without the Owner's written approval. The Owner may require removal or reassignment of any member of the Project Team, or assistant, technical or administrative personnel with or without cause, upon notice to the Contractor. Contractor shall reassign or remove any Project Team member or assistant,
technical or administrative personnel within five (5) business days after notice to do so from the Owner. Before beginning the Work, the Contractor shall provide to the Owner and the Architect a job organization chart, identifying all key personnel involved in the Work and their responsibilities and including the percentage of time each person identified thereon will devote to the Project. ARTICLE 3 RELATIONSHIP OF THE PARTIES The Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with the Architect and exercise the Contractor's skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to furnish at all times an adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner consistent with the Owner's interests. The Owner agrees to furnish and approve, in a timely manner, information required by the Contractor and to make payments to the Contractor in accordance with the requirements of the Contract Documents. ARTICLE 4 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § 4.1 The date of commencement of the Work shall be the date of this Agreement unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. (Insert the date of commencement, if it differs from the date of this Agreement or, if applicable, state that the date will be fixed in a notice to proceed.)
If, prior to commencement of the Work, the Owner requires time to file mortgages and other security interests, the Owner's time requirement shall be as follows:
§ 4.2 The Contract Time shall be measured from the date of commencement. § 4.3 The Contractor shall achieve Substantial Completion of the entire Work not later than ( ) days from the date of commencement, or as follows: (Insert number of calendar days. Alternatively, a calendar date may be used when coordinated with the date of commencement. If appropriate, insert requirements for earlier Substantial Completion of certain portions of the Work.)
, subject to adjustments of this Contract Time as provided in the Contract Documents. (Insert provisions, if any, for liquidated damages relating to failure to achieve Substantial Completion on time, or for bonus payments for early completion of the Work.) The Contractor recognizes that any delay in achievement of Substantial Completion by the above-referenced date (the &quot;Scheduled Substantial Completion Date&quot;) shall result in damages to the Owner which may include among other things lost revenues and that such damages will be difficult to ascertain. Accordingly, the Contractor and Owner agree that, in lieu of actual damages, Contractor shall pay the Owner $____________ per day as liquidated damages for each day beyond the Scheduled Substantial Completion Date until Substantial Completion is achieved. The Contractor and the Owner agree that the amount set forth herein is a reasonable approximation of the Owner's actual damages resulting from such delay, and that such liquidated damages are not a penalty and shall be Owner's sole and exclusive remedy in the event of Contractor's delay in achieving Substantial Completion by the Scheduled Substantial Completion Date. ARTICLE 5 CONTRACT SUM § 5.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the Contract. The Contract Sum is the Cost of the Work as defined in Article 7 plus the Contractor's Fee.
§ 5.1.1 The Contractor's Fee: (State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor's Fee.)
§ 5.1.2 The method of adjustment of the Contractor's Fee for changes in the Work:
§ 5.1.3 Limitations, if any, on a Subcontractor's overhead and profit for increases in the cost of its portion of the Work:
§ 5.1.4 Rental rates for Contractor-owned equipment shall not exceed place of the Project.
) of the standard rate paid at the
§ 5.1.5 Unit prices, if any: (Identify and state the unit price; state the quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price Per Unit
§ 5.2 GUARANTEED MAXIMUM PRICE § 5.2.1 The Contract Sum is guaranteed by the Contractor not to exceed ($ ), subject to additions and deductions by Change Order as provided in the Contract Documents. Such maximum sum is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without reimbursement by the Owner. (Insert specific provisions if the Contractor is to participate in any savings.) Savings shall be allocated as follows: [60% to Owner/40% to Contractor] § 5.2.2 The Guaranteed Maximum Price is based on the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: (State the numbers or other identification of accepted alternates. If bidding or proposal documents permit the Owner to accept other alternates subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when the amount expires.)
§ 5.2.3 Allowances included in the Guaranteed Maximum Price, if any: (Identify allowance and state exclusions, if any, from the allowance price.) Item Price
§ 5.2.4 Assumptions, if any, on which the Guaranteed Maximum Price is based:
§ 5.2.5 To the extent that the Drawings and Specifications are anticipated to require further development by the Architect, the Contractor has provided in the Guaranteed Maximum Price for such further development consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include such things as changes in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Change Order.
ARTICLE 6 CHANGES IN THE WORK § 6.1 Adjustments to the Guaranteed Maximum Price on account of changes in the Work may be determined by any of the methods listed in Section 7.3.3 of AIA Document A201­2007, General Conditions of the Contract for Construction. § 6.2 In calculating adjustments to subcontracts (except those awarded with the Owner's prior consent on the basis of cost plus a fee), the terms &quot;cost&quot; and &quot;fee&quot; as used in Section 7.3.3.3 of AIA Document A201­2007 and the term &quot;costs&quot; as used in Section 7.3.7 of AIA Document A201­2007 shall have the meanings assigned to them in AIA Document A201­2007 and shall not be modified by Articles 5, 7 and 8 of this Agreement. Adjustments to subcontracts awarded with the Owner's prior consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those subcontracts. § 6.3 In calculating adjustments to the Guaranteed Maximum Price, the terms &quot;cost&quot; and &quot;costs&quot; as used in the above-referenced provisions of AIA Document A201­2007 shall mean the Cost of the Work as defined in Article 7 of this Agreement and the term &quot;fee&quot; shall mean the Contractor's Fee as defined in Section 5.1.1 of this Agreement. § 6.4 If no specific provision is made in Article 5 for adjustment of the Contractor's Fee in the case of changes in the Work, or if the extent of such changes is such, in the aggregate, that application of the adjustment provisions of Article 5 will cause substantial inequity to the Owner or Contractor, the Contractor's Fee shall be equitably adjusted on the same basis that was used to establish the Fee for the original Work, and the Guaranteed Maximum Price shall be adjusted accordingly. ARTICLE 7 COSTS TO BE REIMBURSED § 7.1 COST OF THE WORK § 7.1.1 The term Cost of the Work shall mean costs necessarily incurred by the Contractor in the proper performance of the Work. Such costs shall be at rates not higher than the standard paid at the place of the Project except with prior consent of the Owner. The Cost of the Work shall include only the items set forth in this Article 7. § 7.1.2 Where any cost is subject to the Owner's prior approval, the Contractor shall obtain this approval prior to incurring the cost. The parties shall endeavor to identify any such costs prior to executing this Agreement. § 7.2 LABOR COSTS § 7.2.1 Wages of construction workers directly employed by the Contractor to perform the construction of the Work at the site or, with the Owner's prior approval, at off-site workshops. § 7.2.2 Wages or salaries of the Contractor's supervisory and administrative personnel when stationed at the site with the Owner's prior approval. (If it is intended that the wages or salaries of certain personnel stationed at the Contractor's principal or other offices shall be included in the Cost of the Work, identify in Article 15, the personnel to be included, whether for all or only part of their time, and the rates at which their time will be charged to the Work.) § 7.2.3 Wages and salaries of the Contractor's supervisory or administrative personnel engaged at factories, workshops or on the road, in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work. § 7.2.4 Costs paid or incurred by the Contractor for taxes, insurance, contributions, assessments and benefits required by law or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such costs are based on wages and salaries included in the Cost of the Work under Sections 7.2.1 through 7.2.3. § 7.2.5 Bonuses, profit sharing, incentive compensation and any other discretionary payments paid to anyone hired by the Contractor or paid to any Subcontractor or vendor, with the Owner's prior approval. § 7.3 SUBCONTRACT COSTS Payments made by the Contractor to Subcontractors in accordance with the requirements of the subcontracts.
§ 7.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION § 7.4.1 Costs, including transportation and storage, of materials and equipment incorporated or to be incorporated in the completed construction. § 7.4.2 Costs of materials described in the preceding Section 7.4.1 in excess of those actually installed to allow for reasonable waste and spoilage. Unused excess materials, if any, shall become the Owner's property at the completion of the Work or, at the Owner's option, shall be sold by the Contractor. Any amounts realized from such sales shall be credited to the Owner as a deduction from the Cost of the Work. § 7.5 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND RELATED ITEMS § 7.5.1 Costs of transportation , storage, installation, maintenance, dismantling and removal of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by construction workers that are provided by the Contractor at the site and fully consumed in the performance of the Work. Costs of materials, supplies, temporary facilities, machinery, equipment and tools that are not fully consumed shall be based on the cost or value of the item at the time it is first used on the Project site less the value of the item when it is no longer used at the Project site. Costs for items not fully consumed by the Contractor shall mean fair market value. § 7.5.2 Rental charges for temporary facilities, machinery, equipment and hand tools not customarily owned by construction workers that are provided by the Contractor at the site and costs of transportation, installation, minor repairs, dismantling and removal. The total rental cost of any Contractor-owned item may not exceed the purchase price of any comparable item. Rates of Contractor-owned equipment and quantities of equipment shall be subject to the Owner's prior approval. § 7.5.3 Costs of removal of debris from the site of the Work and its proper and legal disposal. § 7.5.4 Costs of document reproductions, facsimile transmissions and long-distance telephone calls, postage and parcel delivery charges, telephone service at the site and reasonable petty cash expenses of the site office. § 7.5.5 Costs of materials and equipment suitably stored off the site at a mutually acceptable location, subject to the Owner's prior approval. § 7.6 MISCELLANEOUS COSTS § 7.6.1 Premiums for that portion of insurance and bonds required by the Contract Documents that can be directly attributed to this Contract. Self-insurance for either full or partial amounts of the coverages required by the Contract Documents, with the Owner's prior approval. § 7.6.2 Sales, use or similar taxes imposed by a governmental authority that are related to the Work and for which the Contractor is liable. § 7.6.3 Fees and assessments for the building permit and for other permits, licenses and inspections for which the Contractor is required by the Contract Documents to pay. § 7.6.4 Fees of laboratories for tests required by the Contract Documents, except those related to defective or nonconforming Work for which reimbursement is excluded by Section 13.5.3 of AIA Document A201­2007 or by other provisions of the Contract Documents, and which do not fall within the scope of Section 7.7.3. § 7.6.5 Royalties and license fees paid for the use of a particular design, process or product required by the Contract Documents; the cost of defending suits or claims for infringement of patent rights arising from such requirement of the Contract Documents; and payments made in accordance with legal judgments against the Contractor resulting from such suits or claims and payments of settlements made with the Owner's consent. However, such costs of legal defenses, judgments and settlements shall not be included in the calculation of the Contractor's Fee or subject to the Guaranteed Maximum Price. If such royalties, fees and costs are excluded by the last sentence of Section 3.17 of AIA Document A201­2007 or other provisions of the Contract Documents, then they shall not be included in the Cost of the Work. § 7.6.6 Costs for electronic equipment and software, directly related to the Work with the Owner's prior approval.
§ 7.6.7 Deposits lost for causes other than the Contractor's negligence or failure to fulfill a specific responsibility in the Contract Documents. § 7.6.8 Legal, mediation and arbitration costs, including attorneys' fees, other than those arising from disputes between the Owner and Contractor, reasonably incurred by the Contractor after the execution of this Agreement in the performance of the Work and with the Owner's prior approval, which shall not be unreasonably withheld. § 7.6.9 Subject to the Owner's prior approval, expenses incurred in accordance with the Contractor's standard written personnel policy for relocation and temporary living allowances of the Contractor's personnel required for the Work. § 7.6.10 That portion of the reasonable expenses of the Contractor's supervisory or administrative personnel incurred while traveling in discharge of duties connected with the Work. § 7.7 OTHER COSTS AND EMERGENCIES § 7.7.1 Other costs incurred in the performance of the Work if, and to the extent, approved in advance in writing by the Owner. § 7.7.2 Costs incurred in taking action to prevent threatened damage, injury or loss in case of an emergency affecting the safety of persons and property, as provided in Section 10.4 of AIA Document A201­2007. § 7.7.3 Costs of repairing or correcting damaged or nonconforming Work executed by the Contractor, Subcontractors or suppliers, provided that such damaged or nonconforming Work was not caused by negligence or failure to fulfill a specific responsibility of the Contractor and only to the extent that the cost of repair or correction is not recovered by the Contractor from insurance, sureties, Subcontractors, suppliers, or others. § 7.8 RELATED PARTY TRANSACTIONS § 7.8.1 For purposes of Section 7.8, the term &quot;related party&quot; shall mean a parent, subsidiary, affiliate or other entity having common ownership or management with the Contractor; any entity in which any stockholder in, or management employee of, the Contractor owns any interest in excess of ten percent in the aggregate; or any person or entity which has the right to control the business or affairs of the Contractor. The term &quot;related party&quot; includes any member of the immediate family of any person identified above. § 7.8.2 If any of the costs to be reimbursed arise from a transaction between the Contractor and a related party, the Contractor shall notify the Owner of the specific nature of the contemplated transaction, including the identity of the related party and the anticipated cost to be incurred, before any such transaction is consummated or cost incurred. If the Owner, after such notification, authorizes the proposed transaction, then the cost incurred shall be included as a cost to be reimbursed, and the Contractor shall procure the Work, equipment, goods or service from the related party, as a Subcontractor, according to the terms of Article 10. If the Owner fails to authorize the transaction, the Contractor shall procure the Work, equipment, goods or service from some person or entity other than a related party according to the terms of Article 10. ARTICLE 8 COSTS NOT TO BE REIMBURSED § 8.1 The Cost of the Work shall not include the items listed below: .1 Salaries and other compensation of the Contractor's personnel stationed at the Contractor's principal office or offices other than the site office, except as specifically provided in Section 7.2. or as may be provided in Article 15; .2 Expenses of the Contractor's principal office and offices other than the site office; .3 Overhead and general expenses, except as may be expressly included in Article 7; .4 The Contractor's capital expenses, including interest on the Contractor's capital employed for the Work; .5 Except as provided in Section 7.7.3 of this Agreement, costs due to the negligence or failure of the Contractor, Subcontractors and suppliers or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable to fulfill a specific responsibility of the Contract; .6 Any cost not specifically and expressly described in Article 7; and .7 Costs, other than costs included in Change Orders approved by the Owner, that would cause the Guaranteed Maximum Price to be exceeded.
.12 .13 .14 .15 .16
Penalties, fines or costs imposed by governmental authorities in connection with, or resulting from any violation of, or noncompliance with laws, regulations, codes, ordinances or directives by the Contractor or any Subcontractor; Costs associated with any corrective or remedial work; Costs of any insurance deductibles paid by the Contractor or any subcontractor; Costs associated with the Contractor's failure to obtain any and all permits in a timely manner, including without limitation, the costs of any delays resulting therefrom, unless such failure is due to the failure of the Drawings and Specifications to conform with the laws and regulations applicable thereto; Costs of accelerating the Work to the extent caused by negligence or default of the Contractor or any Subcontractor of any tier; Costs resulting from the failure of the Contractor or any Subcontractor of any tier to procure and maintain insurance as required by the Contract Documents; Overtime costs required to the extent caused by the Contractor or any Subcontractor of any tier. Project incentive bonuses, except as approved in advance by the Owner in writing; Costs of bonding or securing liens or defending claims filed by Subcontractors of any tier arising from any default by the Contractor in making any payment due to a Subcontractor of any tier, material supplier or laborer, unless such default is due to a default by the Owner in making progress payments to the Contractor hereunder; and Losses or expenses for which the Contractor is compensated by insurance.
ARTICLE 9 DISCOUNTS, REBATES AND REFUNDS § 9.1 Cash discounts obtained on payments made by the Contractor shall accrue to the Owner if (1) before making the payment, the Contractor included them in an Application for Payment and received payment from the Owner, or (2) the Owner has deposited funds with the Contractor with which to make payments; otherwise, cash discounts shall accrue to the Contractor. Trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipment shall accrue to the Owner, and the Contractor shall make provisions so that they can be obtained. § 9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 9.1 shall be credited to the Owner as a deduction from the Cost of the Work. ARTICLE 10 SUBCONTRACTS AND OTHER AGREEMENTS § 10.1 Those portions of the Work that the Contractor does not customarily perform with the Contractor's own personnel shall be performed under subcontracts or by other appropriate agreements with the Contractor. The Owner may designate specific persons from whom, or entities from which, the Contractor shall obtain bids. Unless Owner otherwise agrees in writing, the Contractor shall obtain bids from at least three (3) qualified Subcontractors for each trade and from at least three (3) suppliers of materials or equipment fabricated especially for the Work and shall deliver such bids to the Architect. After analyzing all bids and prior to the award of any subcontract by the Contractor, the Contractor shall provide the Owner, for the Owner's approval, with (a) a bid analysis in a form acceptable to the Owner and (b) a copy of the proposed subcontract agreement, together with the scopes of work, trade payment breakdowns, schedules and other relevant exhibits, all of which shall be subject to the Owner's approval prior to execution by the Contractor. The Owner shall then determine, with the advice of the Contractor and the Architect, which bids will be accepted. No Subcontract shall be awarded by the Contractor without the Owner's approval. Notwithstanding any provision of the Contract Documents to the contrary, neither the review, approval or designation by the Owner of any Subcontractor or Supplier, nor the participation by the Owner in the selection, review or approval of any Subcontractor or Supplier, shall relieve the Contractor of its full responsibility for the selection of Subcontractors and Suppliers, the performance and coordination of the materials and services rendered thereby or the completion of the Work of the Contract Documents in accordance with the terms thereof. The Contractor shall not be required to contract with anyone to whom the Contractor has reasonable objection. § 10.2 When a specific bidder (1) is recommended to the Owner by the Contractor; (2) is qualified to perform that portion of the Work; and (3) has submitted a bid that conforms to the requirements of the Contract Documents without reservations or exceptions, but the Owner requires that another bid be accepted, then the Contractor may require that a Change Order be issued to adjust the Guaranteed Maximum Price by the difference between the bid of the person or entity recommended to the Owner by the Contractor and the amount of the subcontract or other agreement actually signed with the person or entity designated by the Owner.
§ 10.3 Subcontracts or other agreements shall conform to the applicable payment provisions of this Agreement, and shall not be awarded on the basis of cost plus a fee without the prior consent of the Owner. If the Subcontract is awarded on a cost-plus a fee basis, the Contractor shall provide in the Subcontract for the Owner to receive the same audit rights with regard to the Subcontractor as the Owner receives with regard to the Contractor in Article 11, below. § 10.4 Prior to commencing work, the Contractor shall provide the Owner with a list of the names and addresses of all Subcontractors, suppliers and materialmen employed or used in completion of the work, and shall update such list in a timely manner as may be appropriate. ARTICLE 11 ACCOUNTING RECORDS The Contractor shall keep full and detailed records and accounts related to the cost of the Work and exercise such controls as may be necessary for proper financial management under this Contract and to substantiate all costs incurred. The accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner's auditors shall, during regular business hours and upon reasonable notice, be afforded access to, and shall be permitted to audit and copy, the Contractor's records and accounts, including complete documentation supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Subcontractor's proposals, purchase orders, vouchers, memoranda and other data relating to this Contract (&quot;Records&quot;). The Contractor shall preserve these records for a period of three years after final payment, or for such longer period as may be required by law. Owner has the right under this Agreement to audit and review the Records and all other information, materials, and data of every kind and character that may reasonably pertain to any matters, rights, duties and obligations under any Contract Documents at any time and from time to time. In those situations where the Records or other material have been generated from computerized data, Contractor agrees to provide Owner with extracts of data files in computer readable format on data disks or other suitable alternative computer data exchange formats. Whenever requested by Owner or its auditors, the Contractor shall cooperate fully and expeditiously and use commercially reasonably efforts to cause all Subcontractors and Suppliers to cooperate fully and expeditiously in furnishing or in making available to Owner or its auditors all information, materials and data required by this Paragraph. If Owner's audit discovers overcharges in excess of 1% of the amount billed to Owner for the Cost of the Work, Contractor shall, in addition to repaying Owner for the overcharges, reimburse Owner for the reasonable cost of Owner's audit. Any adjustments and/or payments which must be made as a result of any such audit or inspection of Contractor's invoices and/or records shall be made within thirty (30) days from presentation of Owner's audit findings to Contractor. ARTICLE 12 PAYMENTS § 12.1 PROGRESS PAYMENTS § 12.1.1 Based upon Applications for Payment submitted to the Architect by the Contractor and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents. § 12.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows:
§ 12.1.3 Provided that an Application for Payment is received by the Architect not later than the day of a month, the Owner shall make payment of the certified amount to the Contractor not later than the day of the same month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner not later than ( ) days after the Architect receives the Application for Payment. (Federal, state or local laws may require payment within a certain period of time.) § 12.1.4 With each Application for Payment, the Contractor shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached, and any other evidence required by the Owner or Architect to demonstrate that cash disbursements already made by the Contractor on account of the Cost of the Work equal or exceed (1) progress payments already received by the Contractor; less (2) that portion of those payments attributable to the Contractor's Fee; plus (3) payrolls for the period covered by the present Application for Payment. Each Application for Payment shall be accompanied by fully executed waivers of lien from the Contractor and all Subcontractors, suppliers, and materialmen whose work is included in the Application for Payment, [in the form set forth in M.G.L.c. 254,] waiving all claims, liens and encumbrances and/or on the Project and/or on the Owner's
property up to and including the amount of the current Application. Complete and satisfactory waivers of lien as described herein shall be a condition precedent to the Owner's obligation to make any payment to the Contractor. § 12.1.5 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among the various portions of the Work, except that the Contractor's Fee shall be shown as a single separate item. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor's Applications for Payment. § 12.1.6 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. The percentage of completion shall be the lesser of (1) the percentage of that portion of the Work which has actually been completed; or (2) the percentage obtained by dividing (a) the expense that has actually been incurred by the Contractor on account of that portion of the Work for which the Contractor has made or intends to make actual payment prior to the next Application for Payment by (b) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. § 12.1.7 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: .1 Take that portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of AIA Document A201­2007; .2 Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work, or if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing; .3 Add the Contractor's Fee, less retainage of ten percent (10%).The Contractor's Fee shall be computed upon the Cost of the Work at the rate stated in Section 5.1.1 or, if the Contractor's Fee is stated as a fixed sum in that Section, shall be an amount that bears the same ratio to that fixed-sum fee as the Cost of the Work bears to a reasonable estimate of the probable Cost of the Work upon its completion; .4 Subtract retainage of ten percent (10%) from that portion of the Work that the Contractor selfperforms; .5 Subtract the aggregate of previous payments made by the Owner; .6 Subtract the shortfall, if any, indicated by the Contractor in the documentation required by Section 12.1.4 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner's auditors in such documentation; and .7 Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201­2007. Reduction or limitation of retainage, if any, shall be as follows: if the Work is progressing satisfactorily and Contractor is not in default of any of its obligations under the Contract Document (as determined by Owner), then, after the Work is fifty percent (50%) complete, the retainage percentage with respect to the remaining Work shall be reduced to [zero percent (0%)] (it being agreed that any retainage theretofore accrued shall continue to be held by Owner in accordance with the terms and provisions hereof). § 12.1.8 The Owner and the Contractor shall agree upon a (1) mutually acceptable procedure for review and approval of payments to Subcontractors and (2) the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those agreements. § 12.1.9 In taking action on the Contractor's Applications for Payment, the Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Contractor and shall not be deemed to represent that the Architect has made a detailed examination, audit or arithmetic verification of the documentation submitted in accordance with Section 12.1.4 or other supporting data; that the Architect has made exhaustive or continuous onsite inspections; or that the Architect has made examinations to ascertain how or for what purposes the Contractor has used amounts previously paid on account of the Contract. Such examinations, audits and verifications, if required by the Owner, will be performed by the Owner's auditors acting in the sole interest of the Owner.
§ 12.2 FINAL PAYMENT § 12.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully performed the Contract except for the Contractor's responsibility to correct Work as provided in Section 12.2.2 of AIA Document A201­2007, and to satisfy other requirements, if any, which extend beyond final payment; .2 the Contractor has submitted a final accounting for the Cost of the Work and a final Application for Payment; and .3 a final Certificate for Payment has been issued by the Architect. § 12.2.2 The Owner's auditors will review and report in writing on the Contractor's final accounting within 30 days after delivery of the final accounting to the Architect by the Contractor. Based upon such Cost of the Work as the Owner's auditors report to be substantiated by the Contractor's final accounting, and provided the other conditions of Section 12.2.1 have been met, the Architect will, within seven days after receipt of the written report of the Owner's auditors, either issue to the Owner a final Certificate for Payment with a copy to the Contractor, or notify the Contractor and Owner in writing of the Architect's reasons for withholding a certificate as provided in Section 9.5.1 of the AIA Document A201­2007. The time periods stated in this Section 12.2.2 supersede those stated in Section 9.4.1 of the AIA Document A201­2007. The Architect is not responsible for verifying the accuracy of the Contractor's final accounting. § 12.2.3 If the Owner's auditors report the Cost of the Work as substantiated by the Contractor's final accounting to be less than claimed by the Contractor, the Contractor shall be entitled to request mediation of the disputed amount without seeking an initial decision pursuant to Section 15.2 of A201­2007. A request for mediation shall be made by the Contractor within 30 days after the Contractor's receipt of a copy of the Architect's final Certificate for Payment. Failure to request mediation within this 30-day period shall result in the substantiated amount reported by the Owner's auditors becoming binding on the Contractor. Pending a final resolution of the disputed amount, the Owner shall pay the Contractor the amount certified in the Architect's final Certificate for Payment. Final payment shall be made subject to and in accordance with the provisions of Section 9.10 of the General Conditions, provided that the Owner shall retain one percent (1%) of the total Cost of the Work until completion by the Owner of a final audit of the Contractor's records (including all Subcontractors' records) relating to this Contract and resolution and payment of any overcharges revealed or other adjustments made necessary as a result of such audit. The Owner shall perform such final audit within 180 days after the later of (i) the date of final payment, or (ii) the date on which the Contractor makes its books and records available to the Owner for audit. § 12.2.4 The Owner's final payment to the Contractor shall be made no later than 30 days after the issuance of the Architect's final Certificate for Payment, or as follows:
§ 12.2.5 If, subsequent to final payment and at the Owner's request, the Contractor incurs costs described in Article 7 and not excluded by Article 8 to correct defective or nonconforming Work, the Owner shall reimburse the Contractor such costs and the Contractor's Fee applicable thereto on the same basis as if such costs had been incurred prior to final payment, but not in excess of the Guaranteed Maximum Price. If the Contractor has participated in savings as provided in Section 5.2, the amount of such savings shall be recalculated and appropriate credit given to the Owner in determining the net amount to be paid by the Owner to the Contractor. ARTICLE 13 DISPUTE RESOLUTION § 13.1 INITIAL DECISION MAKER The Architect will serve as Initial Decision Maker pursuant to Section 15.2 of AIA Document A201­2007, unless the parties appoint below another individual, not a party to the Agreement, to serve as Initial Decision Maker. (If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.)
§ 13.2 BINDING DISPUTE RESOLUTION For any Claim subject to, but not resolved by mediation pursuant to Section 15.3 of AIA Document A201­2007, the method of binding dispute resolution shall be as follows: (Check the appropriate box. If the Owner and Contractor do not select a method of binding dispute resolution below, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction.) [ X ] Arbitration pursuant to Section 15.4 of AIA Document A201­2007 [ ] [ ] Litigation in a court of competent jurisdiction Other (Specify)
ARTICLE 14 TERMINATION OR SUSPENSION § 14.1 Subject to the provisions of Section 14.2 below, the Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A201­2007. § 14.2 If the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A201­2007, the amount, if any, to be paid to the Contractor under Section 14.2.4 of AIA Document A201­2007 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an amount calculated as follows: .1 Take the Cost of the Work incurred by the Contractor to the date of termination; .2 Add the Contractor's Fee computed upon the Cost of the Work to the date of termination at the rate stated in Section 5.1.1 or, if the Contractor's Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; and .3 Subtract the aggregate of previous payments made by the Owner. § 14.3 The Owner shall also pay the Contractor fair compensation, either by purchase or rental at the election of the Owner, for any equipment owned by the Contractor that the Owner elects to retain and that is not otherwise included in the Cost of the Work under Section 14.2.1. To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements), the Contractor shall, as a condition of receiving the payments referred to in this Article 14, execute and deliver all such papers and take all such steps, including the legal assignment of such subcontracts and other contractual rights of the Contractor, as the Owner may require for the purpose of fully vesting in the Owner the rights and benefits of the Contractor under such subcontracts or purchase orders. § 14.4 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201­2007; in such case, the Guaranteed Maximum Price and Contract Time shall be increased as provided in Section 14.3.2 of AIA Document A201­2007, except that the term &quot;profit&quot; shall be understood to mean the Contractor's Fee as described in Sections 5.1.1 and Section 6.4 of this Agreement. ARTICLE 15 MISCELLANEOUS PROVISIONS § 15.1 Where reference is made in this Agreement to a provision of AIA Document A201­2007 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. § 15.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon, if any.) Prime rate of interest as published in the Wall Street Journal plus two percent (2%) per annum. § 15.3 The Owner's representative: (Name, address and other information.)
§ 15.4 The Contractor's representative: (Name, address and other information.)
§ 15.5 Neither the Owner's nor the Contractor's representative shall be changed without ten days' written notice to the other party. § 15.6 The Contractor shall provide monthly written reports to the Owner and Architect on the progress of the entire Work. The Contractor shall maintain a daily log containing a record of weather, Subcontractors working on the site, number of workers, Work accomplished, problems encountered and other similar relevant data as the Owner may reasonably require. The log shall be available to the Owner and Architect at all times. Without limiting the foregoing, Contractor hereby agrees to provide the following reports to the Owner and the Architect: (i) Weekly Written Reports: (a) (b) (ii) Written meeting minutes. Weekly written winter conditions budget.
Monthly Written Reports: (a) (b) (c) (d) (e) (f) Project critical issues, risks and opportunities. Project forecast and actual expenditures (cash flow projections). Summary Project schedule, including written explanations for variances in the Project Schedule. Financial summary, including written explanation for variances in Project budget. Progress photography, Written report of GMP Contingency status, including usage during the period covered by the most recent Application for Payment.
All written reports shall be in form approved by the Owner and shall be distributed by the Contractor as follows: One (1) set of reports to the Architect including color progress photography and five (5) sets of reports to the Owner (of which one set shall include color progress photography).
ARTICLE 16 ENUMERATION OF CONTRACT DOCUMENTS § 16.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in the sections below. § 16.1.1 The Agreement is this executed AIA Document A201­2007, Standard Form of Agreement Between Owner and Contractor. § 16.1.2 The General Conditions are AIA Document A201­2007, General Conditions of the Contract for Construction. § 16.1.3 The Supplementary and other Conditions of the Contract: Document Title Date Pages
§ 16.1.4 The Specifications: (Either list the Specifications here or refer to an exhibit attached to this Agreement.)
Title of Specifications exhibit: § 16.1.5 The Drawings: (Either list the Drawings here or refer to an exhibit attached to this Agreement.) Title of Drawings exhibit: § 16.1.6 The Addenda, if any: Number Date Pages
Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this Article 16. § 16.1.7 Additional documents, if any, forming part of the Contract Documents: .1 AIA Document E201TM­2007, Digital Data Protocol Exhibit, if completed by the parties, or the following:
Other documents, if any, listed below: (List here any additional documents that are intended to form part of the Contract Documents. AIA Document A201­2007 provides that bidding requirements such as advertisement or invitation to bid, Instructions to Bidders, sample forms and the Contractor's bid are not part of the Contract Documents unless enumerated in this Agreement. They should be listed here only if intended to be part of the Contract Documents.)
ARTICLE 17 INSURANCE AND BONDS The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11 of AIA Document A201­2007. (State bonding requirements, if any, and limits of liability for insurance required in Article 11 of AIA Document A201­2007.) Type of insurance or bond Limit of liability or bond amount ($ 0.00)
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