MANY CONSTRUCTION PROJECTS ARE DOCUMENTED USING AIA FORMS.
These forms focus on issues concerning the architect and contractor. It is in the owner’s interest to protect itself by negotiating the key provisions in the contract that relate to cost, delays and other areas of liability. Below are some key issues the owner should consider.
Substantial Completion –
It is important that the owner have an understanding of the term “substantial completion” and the substantial completion date. Generally a project is “substantially completed” when the owner can use the property for its intended use. Minor work may still need to be finished (punchlist items). But depending upon the nature of the work, the unfinished items may be more than minor (e.g., landscaping and tree planting for residential construction). It is important for the owner to have a clear understanding of what work may remain outstanding, even when the project is deemed “substantially completed.” See AIA A107 - §15.4.
Please see full newsletter below for more information.