Common articles in standard general conditions Flashcards
Common Articles in standard general conditions (PRM 5.4.1.5)
The AIA Document A201, General Conditions of the Contract for Construction; the EJCDC C-700, Standard General Conditions of the Construction Contract; and the DBIA Document 535, Standard Form of General Conditions of the Contract Between Owner and Design-Builder address common project concerns. Each document deals with these concerns in a similar manner but with language determined to be in accord with the needs of each organization. In general, the DBIA general conditions provide fewer details and requirements than do the EJCDC and AIA documents because the designer and the builder are acting as a single entity. Some of these common articles deal with:
Work
Each of the three documents describes work under the basic definitions in the respective first articles.
Whereas all three define work as the construction and other services required by the contract documents, including labor, material, equipment, and services, AIA Document A201 additionally refers to the contractor’s obligation to perform. EJCDC C-700 includes a reference to the documentation required to produce the construction, and DBIA 535 requires the procuring and furnishing of all materials, equipment, services, and labor that are reasonably inferable from the contract documents.
Although both the AIA and the EJCDC general conditions go on to describe the project as the total construction, of which the work under the contract documents may be the whole or part, the DBIA general conditions do not make this additional distinction.
Contract documents
AIA Document A201 lists the documents that makeup the contract documents as the agreement, conditions of the contract, drawings, specifications, addenda issued prior to execution of the contract, other documents listed in the agreement, and modifications issued after execution of the contract and excludes certain procurement documents. EJCDC C-700 simply states that the contract documents are those printed or hard-copy documents listed in the agreement, excluding shop drawings, other contractor’s submittals, and reports and drawings of subsurface and physical conditions. DBIA Document 535 refers to contract documents throughout, but does not define what they are composed of within these general conditions.
Payments
The articles dealing with payment procedures are fairly detailed in each of the three general conditions. Each sets out requirements for a schedule of values and a method of request for payment and review of application, withholding payment, substantial completion, and final payment. Both AIA Document A201 and EJCDC C-700 define a contract sum, whereas DBIA Document 535 does not.
Termination
Each of the three general conditions provides detailed procedures for both the owner and the contractor or design-builder to suspend the work without cause or to terminate the contract for cause.
In general, the reasons for suspension or termination are similar for each of the general conditions and include failure to make payments, failure to provide adequate workforce or materials, flagrant disregard for laws and regulations, or a breach of the contract documents. The time periods allowed under each general condition vary. In addition, AIA Document A201 allows the contractor to terminate the contract if the work has stopped for 30 consecutive days as a result of a declaration of a national emergency. DBIA 535 also provides for the possibility of bankruptcy by either the owner or the design-builder.
Claims and dispute resolution
Both the AIA and EJCDC general conditions refer most claims or disputes to the A/E first, and a decision is made at this level if possible. AIA Document A201 exempts any claims dealing with hazardous materials, but EJCDC C-700 has no similar exception. For both AIA and EJCDC, the next step after failing resolution with the A/E is to take the dispute to mediation and, failing that, next to arbitration for resolution. DBIA Document 535 addresses this concern by first emphasizing dispute avoidance and a commitment to working with each other at all times to minimize disputes and losses. In this case, the design-builder’s representative and the owner’s representative first attempt to resolve the dispute together. Failing that, the dispute is taken to senior representatives of both parties, then failing that to a nonbinding mediation, and failing that, to arbitration.
Each of the three standard general conditions, though similar in many respects, has developed over time and has evolved into a document that serves the basic requirements of its sponsoring organization.
