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Getting involved with construction payment review per AIA 101

Discussion in 'Architects & Engineers' started by Jay, Sep 21, 2018.

  1. Jay

    Jay Sawhorse

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    Hello everyone,

    I am fairly new here, been spending some time over on the commercial forums, yet I mostly do residential. About time I check out this side of the forum!

    Have a new single family home designed and owners bank is making clients use AIA 101 Standard form of agreement. Clients just sent me a copy and there I am!....as part of the contract between owner and contractor! In the payment section is talks about contractor submitting all payment requests to me, the architect, for approval.

    I didn't ask to be involved in this phase of work. I do like my clients and want to help them out. Just a little surprised I'm involved without even being asked.

    Looking for some feedback on what to expect and what kind of fee I should charge, and how often? I suppose I could start a journal, visit the site periodically...maybe once every two weeks? And keep tabs of what's going on. See the work that's been done and verify said work is in keeping with invoices. Could keep time sheet and charge hourly?

    Honestly, this is extra paperwork I really don't need at this busy time. I know the builder well and do not foresee any issues. I may simply tell them I am not comfortable doing this, even though I've been on residential job sites for over 20 years, I am pretty good at seeing what's happening in the field. I always go by my jobs anyway...just never in an obligatory way. Being completely new to this I'm wondering what to look out for and if this extra work is even worth my while. Any advice is appreciated. Thanks a lot!
    Jay
     
    jar546 and Francis Vineyard like this.
  2. RLGA

    RLGA Sawhorse

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    Although not a code issue, this is in one of my areas of expertise.

    Your obligation is to whatever is stated in the agreement you have with the owner. If your agreement does not include construction contract administration (CCA) services, then you’re under no obligation to provide those services, even if they are in the owner-contractor agreement, because you are not a party of the owner-contractor agreement (there is no signature line for you anyway).

    If they want you to provide CCA services and you’re willing to provide them with those services, you need to amend your agreement with the owner and clearly outline the scope of your services. For most A/E basic services, CCA can consume 40% of the architect’s fee. Therefore, for CCA services, your fee should be in the neighborhood of 67% of your design fee.

    Architect’s provide CCA services to (1) protect their design and (2) to look out for the owner’s interests. If you don’t care about 1 and don’t want the added responsibility for 2, then pass on providing CCA services and suggest that the owner either hire another architect to provide CCA services or have the owner assume the responsibility themselves. If they do the latter, have them revise the A101 document to remove the role of architect from the agreement (advise them to get an attorney to make the revisions).
     
    Pcinspector1, jar546, Sleepy and 2 others like this.
  3. ADAguy

    ADAguy Sawhorse

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    Do you carry E & O insurance? If so ask your agent as to the impact this may have on your policy.
     
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  4. jar546

    jar546 *****istrator

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    Excellent point
     
  5. north star

    north star Sawhorse

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    # ~ #

    Jay,

    Rule # 1 in all types of construction...

    "Thou shall coverest [ i.e. - meaning to protect thoroughly at all times ],
    thy arse & thou assets at ALL TIMES, regardless of how well you know,

    or think you know someone.

    Rule # 2: Thou shall NEVER ignore or dismiss Rule # 1 !


    # ~ #
     
    Jay likes this.
  6. Jay

    Jay Sawhorse

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    Update: I politely bowed out of having anything to do with the owners checkbook and builders payment schedule. Lucky for me there is plenty more fun work to do than get in the middle of that!
     
  7. ADAguy

    ADAguy Sawhorse

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    Curious, are you an architect and what state do you reside in?
     

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