This 2-hour online interactive course examines two types of Owner-Contractor agreements: (1) stipulated sum, and (2) cost plus a fee with a guaranteed maximum price (often called "GMP") The use of general conditions with both types of contracts is assumed in this course and particular attention is paid to the general conditions as they constitute the bulk of the contract whether it is a stipulated sum or GMP type. This course assumes some familiarity with the AIA documents, the contractually defined roles of the Owner, Contractor, and Architect, and the interrelationship of the Contract Documents, such as the Agreement, General Conditions, and Drawings and Specifications. We will follow the organization of the AIA documents as a starting point. Consequently, the term "architect" will typically be employed, but the principles discussed in this course can apply to other design professionals as well. References to relevant sections of the AIA documents are included in parentheses throughout.
As we review the two types of Owner-Contractor agreements, this course identifies major contract issues, performance problem areas, and definitions of important terms. Issues which are likely to cause conflict or generate disputes are identified. Subjects which often appear obscure to design professionals, such as insurance, are discussed.
A test is included in at the end of this course.
Vector Solutions has a long history of providing industry-specific content for its customers. While this course and its content remain accurate and functional within our systems, the look and feel may not match our more modern offerings.
At the conclusion of this course, you will:
- Be able to intelligently discuss appropriate contractual provisions in a well-informed manner with Owners and Contractors
- Be aware of the legal obligations of all parties involved in the Project
- Be able to meet their legal and professional obligations under the construction contract
Written changes and additions made to standard contract forms by the uninformed, although well-intentioned, can be unclear, confusing, incomplete, or contradictory. Even when standard form contracts are used, a lack of familiarity with the intricacies and legal ramifications of the document can hamper the design professional in the performance of its duties. The purpose of this course is to help design professionals with these types of contract challenges.
A well written, detailed contract can reduce disputes on a construction project by clearly delineating the rights, obligations, and responsibilities of the parties. Accordingly, this course will also suggest changes and additions applicable to most Owner-Contractor contracts. These changes and additions are intended to level the playing field between the Owner and the Contractor by making the contract more Owner-favorable, and, thereby, strengthening the design professional's position as the Owner's representative in dealing with the Contractor.
