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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.

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