Similarly, in accordance with document A401, the subcontractor has access to information about the financial health of the general contractor as part of the project, but must submit his application before signing the subcontract. If the terms of the contract do not meet the needs of a subcontractor, the aia contractual documents may be amended. Be sure to give it to a lawyer before signing it, even if you wrote the amendments. Section 4.8 of A401 gives the subcontractor the explicit right to leave the employment if the GC does not pay the subcontract within one week of the date of the contract. The agreement gives them this right “without prejudice to other available remedies”, which means that the subcontractor is not required to find an alternative solution before carrying out his work. For this article, we assume that the contractual documents concerning the subcontractor are A401 (subcontracting contract), A101 (general company contract) and A201 (General conditions). The American Institute of Architects (AIA) is one of the largest professional organizations in the design and construction industry. You create and sell documents that are often used in construction projects, including contracts, payment applications and more. In this article, we will look at the pros and cons of AIA contracts for subcontractors. AIA progress statement means using other standardized AIA documents to make the payment process easier and easier. The aia statement allows subcontractors to invoice payments during the project.
This gives them more control over their own cash flow. If a payment is delayed or non-existent, the sub has more bargaining power to ensure that the payment passes. However, the A401 automatically supports the terms of higher agreements between the main contractor and the owner. The AIA establishes a large number of contracts that may apply in this scenario depending on the nature of the project. Two of the most common are the A101 Owner-Contractor Agreement (for a lump sum project) and the A201 (general conditions of the construction contract). Subcontractors should read and understand all AIA contract documents related to their project. Some view the AIA contract as a preference for the project owner, as it imposes most of the burden on the contractor in the event of a delay, modification or even payment. The contract assumes that the design package is quite perfect. It is the contractor`s responsibility to demonstrate the problems posed by the project. . . .