| |
|
Click Here to
Subscribe Today
for Your FREE
DCD Magazine
Subscription |
New Standard Form Multi-Party Agreement – Good for Project Behavior
The construction industry evolves constantly – always searching for faster
construction at less cost and with more efficient management. Hand in hand with
this change comes the need for construction documents that keep pace with new
technology, delivery methods, and new practices.
One such delivery method, Integrated Project Delivery builds good project
behavior by integrating people, systems, business structures and practices into
a process that brings together the talents of all participants to optimize
project results. By working together in the integrated project delivery method,
project participants increases the value to the owner, reduces waste, and
maximizes efficiency through all phases of design, fabrications, and
construction.
Integrated project delivery creates an atmosphere in which the parties openly
share information; goals are clearly established; risk is collectively managed
and allocated where appropriate; success is tied to shared incentives; and new
technologies are utilized.
The AIA Document C191™-2009 establishes the basic legal framework for a
multi-part agreement for integrated project delivery. The new C191-2009,
Standard Form Multi-Party Agreement addresses the eight main sequential phases
to integrated project delivery:
-
Conceptualization (comparable to traditional Programming)
-
Criteria Design (comparable to traditional Schematic Design)
-
Detailed Design phase (comparable to traditional Design Development)
-
Implementation Documents (comparable to traditional Construction Documents)
-
Agency/Buyout
-
Construction (comparable to traditional Construction Administration)
-
Closeout
With this new agreement the parties execute one coordinated and integrated
agreement that clearly sets forth the parties’ roles and responsibilities in
delivering a project consistent with the principles of integrated project
delivery. Unlike the earlier agreement, C195™-2008, the parties do not form
an LLC.
Paradigm Shifting Approach
With the new C191-2009 Standard Form Multi-Party Agreement for Integrated
Project Delivery individual success of each party is directly tied to a
project’s overall success. The architect and the contractor, as well as any
other non-owner parities, collectively earn profit through the achievement
of the owner’s specified goals. This method of compensation promotes “good
for the project” behavior and encourages all parties to work through
disputes as they arise rather than assigning blame. In addition, the
agreement establishes a collaborative management structure that involves all
of the primary project stakeholders and is designed to minimize disputes
while increasing project efficiency and quality.
“The design and construction industries are evolving, and AIA Contract
Documents continue to guide the way by creating documents and resources that
are necessary to lead the industry in new practices and project delivery
approaches,” said Michael B. Bomba, Esq. Associate Counsel, AIA Contract
Documents. “The AIA’s new Multi-Party Agreement for Integrated Project
Delivery reflects the shift away from working in silos and supports new
collaborative methods being employed among architects, owners and
contractors.”
The C191-2000, the multi-party agreement, is one of several contractual
models developed by the AIA for use in integrated project delivery. The AIA
has also published two other sets of integrated project delivery documents
that are separate and distinct from C191-2009. For additional information on
those documents visit
www.aia.org/contractdocs/reference. AIA Contract Documents software can
be purchased at
www.aia.org/contractdocs/purchase. Documents in paper form are available
through the AIA’s full service distributors. For a listing of full service
distributors and pricing information, visit
www.aia.org/docs_purchase.
For additional information regarding integrated project delivery, see
Integrated Project Delivery: A Guide at
www.aia.org/contractdocs/reference.
|
