Publications

Design Professional's Practice Bulletin

Volume 3, Number 1 — July 1999

This Bulletin addresses recent developments affecting Design Professionals as well as business concerns as important as the specific professional and technical issues they face.

Editors: Neil P. Clain and Richard J. Davies

The 1997 AIA Documents and Their Impact on the Economics and Procedures of Your Design Practice

By Gunther O. Carrle, Esquire

Approximately two years ago, in October of 1997, the American Institute of Architects (AIA) completed another major decennial review of its set of standard documents and made revisions to ten of its standard documents.

We have discussed these changes with many of you in our meetings, through our seminars, and in other publications over these past two years. However, to ensure that we have reached all of you we are addressing some changes here. Due to the scope of these changes, and thus our assessment of them, and due to the limitations of this format, we will focus on the principal changes in the Owner/Architect Agreement ("B141"), and our assessments of them, in this issue, and the next two, of The Design Professionals' Bulletin.

In this issue we address generally the reasons for the changes to B141, its new layout, and some of the substantial changes to the scope of services provided under this new form of agreement.

Why The Changes?

In order to understand the impact of thesc changes you should know the goal sought in making them. They are to: facilitate the Architect's expanded role and services; enhance and clarify the relationship between services rendered and fees received; provide a clearer description of serv.ices; eliminate the "defensive" tone of prior documents; demonstrate the Architect's value; clarify the Owner's role; promote better conflict resolution; provide for flexibility in the Architect's services, compensation and project delivery; articulate project assumptions and expectations, manage costs through the life of the project, and maintain familiarity and comfort for existing document users. The impact of these goals can be seen in the nature of the changes in the new B141.

The New B141 Format

The revisions to the new B141 begin with its format, which now consists of two parts. Part 1, the Standard Form of Agreement Between Owner and Architect with Standard Form of Architect's Services, contains articles 1.1 through 1.5, with subparts, which are the "boilerplate" terms and conditions which are generally applicable to any project. Part 2, the Standard Form of Architect's Services: Design and Contract Administration, contains articles 2.1 through 2.9, with subparts which provide a detailed description of the scope of services, both as to type and quantity. Part 2 is intended to be a "variable." Different forms of these "scope of services" documents are to be created for various types of projects. While the AIA has announced that it intends to develop various alternatives over the next several years, the document is structured so that design firms can develop their own form of Part 2.

Initial Information ­ Article 1.1

One of the principal catalysts for disputes between Owners and Architects is an unrealistic expectation of the Architect's services created by a misunderstanding of the Architect's role during the project. Article 1.1 attempts to minimize this problem. The Owner and Architect are now required to set forth the basic information and assumptions upon which the project is based. The information includes: the intended use, physical parameters, the Owner's program for the project; the Owner's budget, schedule and proposed method of procurement; special restrictions on the property; the Architect's project team; and the Owner's consultants. The requirement to include these provisions promotes substantial discussion between the Owner and Architect regarding topics that frequently lead to dispute. These initial assumptions are given great value. Indeed, B141 calls for an equitable adjustment in fee and schedule in the event any of these assumptions changes.

Scope of Services
Tbe Preconstruction Phases

The description of the scope of services has now been broadened and made more detailed; it is essential that you review the new scope of services described in Part 2 before you decide to use the new form to ensure consistency between what you expect to do for the project and what the contract requires you to do. Although many of the "additions" to the scope of services merely identify services Architects have been providing in fact, others add to the contractually required burden of performance. For example, the new B141 requires the Architect to: prepare a preliminary evaluation of the site; review the Owner's proposed method of contracting and advise of its impact on program, cost and schedule; notify the Owner of other information or consultants which may be required including the need for cost estimators; update a preliminary estimate of the Cost of the Work and make recommendations if the updated estimate exceeds budget; prepare and thereafter update the project schedule including milestones for design services, commencement of construction and substantial completion; manage the Architcct's services and administer the Project; make design submissions to the Owner as appropriate; make a presentation to representatives of the Owner; issue progress reports; coordinate with the Owner and the Owner's consultants; research design criteria; and advise the Owner of the amounts needed for the final completion of the work at the time the certificate of substantial completion is issued. As you can see, many of these duties are without limit and increase your exposure in certain areas. And, while many are services your firm might provide by tradition, they are now contractually mandated. These new changes of scope also increase your firm's administrative burden in certain respects. For example, now the Architect must maintain a log of applications for payment, contractor submittals, and contractor Requests for Information. All such logs have always been an excellent loss prevention tool for the Architect and, as a consequence, for this reason you may have created such logs; however, the new B141 establishes a contractual right in the Owner to have and use such logs you are obligated to produce.

©1999 Powell, Trachtman, Logan, Carrle & Lombardo, P.C.

This bulletin is intended for general information purposes only and does not constitute legal advice. The reader should consult with legal counsel to determine how laws, suggestions and illustrations apply to specific situations.