What is the AIA and Why do They Keep Popping Up in My Construction Contracts?

The American Institute of Architects (AIA) is a professional organization of architects in the United States. One of the main functions of the AIA is providing the construction industry with standard forms and agreements that define and govern the construction relationships between owners, design professionals, general contractors and subcontractors.

These standard form agreements cover a wide array of construction areas ranging from: owner-contractor agreements, contractor-subcontractor agreements, general conditions, change orders, and pay applications. While these are form agreements, this does not mean the documents are written in stone. In most situations, the parties have made changes to the standard documents, changes that could affect your entire work on the Project.

Before you sign your next contract, there are multiple issues you need to be aware of that can affect your bottom line and whether you should bid on the project.

• What are the terms regarding payment? Does the contract specify the contractor make payments to subcontractors on a "pay when paid" basis or within a set time after completion of your work?
• What are the terms regarding damages? Is there a liquidated or consequential damages clause in the contract and in whose benefit does it run?
• Is there an indemnification clause and does it apply to you?
• Who oversees and signs off on the work performed? The design professional, the general contractor or some combination of the two?

The attorneys at Goosmann Law Firm have decades of experience in construction litigation and have reviewed numerous AIA construction contracts to help their clients better understand the terms and potential pratfalls associated with their contracts. Before signing your next construction contract, let our Omaha, Sioux City or Sioux Falls attorneys advise you on the terms which effect you and your business before it is too late, and you are stuck in your next construction nightmare with no end in sight and wondering when, and if, you are going to be paid.