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A101-2017 stipulated-sum agreement and the Contract Documents

What A101-2017 is

AIA A101-2017 is the owner-contractor agreement where the basis of payment is a stipulated sum, also called a lump sum. The contract fixes one sum for the Work.

  • The trap: Cost of the Work plus a Fee with a guaranteed maximum price is A102-2017, not A101.
  • Field-measured unit prices are not the A101 basis.
  • An open-ended cost plus a fee with no price limit is not the A101 basis either.

The general conditions it adopts

The A101-2017 preview states that AIA A201-2017, General Conditions of the Contract for Construction, is adopted in the agreement by reference.

  • A201-2007 is the prior edition. The 2017 agreement pairs with the 2017 general conditions, so a 2007 answer is a trap.
  • A102-2017 is a separate owner-contractor agreement (cost plus fee with GMP), not general conditions.
  • Exhibit A is the Insurance and Bonds exhibit, not the general conditions.

Addenda versus Modifications

A101-2017 Article 1 lists both as Contract Documents, and the difference is timing:

  • Addenda are issued before the Agreement is executed. They are changes made during bidding.
  • Modifications are issued after execution.

The common error is to reverse the two. Another is to say both come only after execution, which ignores that Addenda are pre-execution bidding changes. Addenda are expressly listed as Contract Documents, so any statement excluding them is wrong.

Liquidated damages are a blank

A101-2017 §4.5 reads "Insert terms and conditions for liquidated damages, if any". The printed form fixes no liquidated-damages amount. §3.3.3 ties late Substantial Completion to whatever the parties insert in §4.5.

The trap is a fixed figure. A rate of 1% per week, $500 per day, or a rate tied to retainage does not appear anywhere in the standard form. If an estimator opens a blank A101 looking for the standard rate, there is none: the rate exists only if the parties write one in.

Knowledge check

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