Construction Claims + Disputes

AIA is preparing its revisions of most of its key contract documents for the first time in a decade. While these changes are not yet finalized, it is anticipated that the following changes will be featured:

• Additional insured coverage will be required of contractors and subcontractors by virtue of the A201 general conditions.
• There will be limitations on the contractor’s ability to request financial assurances from the owner.
• The architect can be replaced by an Initial Decision Maker (IDM) who will act as a third-party neutral in disputes between the owner and contractor. Those decisions could later be “appealed” to mediation and ultimately arbitration or litigation.
• Mandatory arbitration, in AIA documents since 1888, is out and the parties can elect arbitration or litigation by checking a box.
• Owners will be able to inquire about the payment status of subs/suppliers, and make joint check payments if necessary.

The final documents are expected to be released in the fall of this year.