Question

What are the similarities and differences between the 500 series ConsensusDOCS and the AIA 121/CMc version in terms of how the risks of time and cost are allocated?

Answer 1

The comparison between 500 Series Consessus Docs and AIA 121/Cmc version are as follows -

Access to Owner's Financial Information: The AIA form limits the contractor's ability to obtain information about the owner's finances, while the ConsensusDOCS agreement requires the owner to provide information about project financing anytime upon the contractor's request.

Project Administration: The ConsensusDOCS agreement emphasizes direct communication between the owner and contractor. The AIA documents contemplate communication through either the architect or an Initial Decision Maker ("IDM") appointed by the parties.

Indemnification: AIA requires only a one-way indemnification obligation from the contractor to the owner and architect, except for situations relating to hazardous materials. The ConsensusDOCS agreement provides a mutual indemnification obligation between the owner and contractor

Change Orders and Directives: Under the AIA, the architect prepares and executes change orders and makes the initial determination concerning an adjustment in the contract sum or time for a change directive. By contrast, ConsensusDOCS requires the owner and contractor to negotiate a change order and a resolution for an adjustment in time or money when there is a change directive.

Dispute Resolution: The ConsensusDOCS provide a multi-step process by which the contractor and owner first attempt to negotiate and resolve a dispute. Under the AIA, the IDM makes the initial decision when there is a dispute. Under both forms, mediation is then required before the parties utilize either binding arbitration or litigation.