Masonry Magazine December 1997 Page. 13
Modifications Contained in the 1997 Edition of AIA Document A201 General Conditions
1.2.1 Performance by contractors (and subcontractors) is now required only to the extent reasonably inferable from the contract documents as being necessary to produce the indicated (previously intended) results. The former wording led to needless conjecturing and claims when design intent was not made clear.
2.1.2 Owner is obligated to provide an identification of its interest in the property as part of the lien-related information provided to the contractor.
2.2.1 Contractors (and subcontractors) may stop their work if the owner fails to furnish evidence of adequate project financing at any time. Further, the owner may not materially vary its financial arrangements without prior notice to the contractor.
2.2.3 Contractors (and subcontractors) are entitled to rely on the accuracy of information furnished by the owner including surveys showing physical characteristics, legal limitations and utility locations at the jobsite.
3.2.1, 3.2.2, 3.2.3 Contractors (and subcontractors) do not have a duty to discover design errors, omissions or inconsistencies, but each has the obligation to report any such discrepancies when observed. Failure to do so may result in liability for owner costs and damages that would have been avoided had the discrepancies been reported promptly.
3.12.10 Limits owner and architect reliance on certifications by a design professional hired by the contractor (or subcontractors) to the adequacy of design criteria furnished by the owner and architect for use by the hired design professional. Also clarifies that the contractor (and subcontractors) are not responsible for the adequacy of performance or design criteria in the contract documents and that the contractor (and subcontractor) may not be required to perform design services in violation of applicable state law.
3.18.1 Improves the indemnity provision by deleting words that previously caused confusion and led to litigation.
4.3.3 Clarifies contractors' (and subcontractors) right to discontinue performance of extra work if not paid promptly in accord with Articles 9.7.1 and 14.
4.3.10 Shields contractors (and subcontractors) against owner (and contractor) claims for consequential damages such as loss of income or reputation in exchange for contractors (and subcontractors) waiving rights that are rarely pursued successfully on private construction work.
4.4.1 Eliminates the requirement that disputes between contractors and subcontractors must be referred first to the architect for a decision as a prerequisite before mediation, arbitration or litigation could begin. The former requirement needlessly delayed many cases.
4.5.1 Requires mediation for resolving disputes quickly and inexpensively instead of moving directly to arbitration or court action. The non-binding mediation process has a high success rate in settling construction disputes without souring customer relations.
7.3.8 Establishes a billing mechanism via Article 9 3 1 1 to collect monthly for the reasonable value of undisputed work performed pursuant to a construction change directive. For any portion in dispute, the architect is required to make an interim determination of the amount authorized for payment as though a change order had been issued.
9.5.1.2 Allows contractors (and subcontractors) to avoid moneys being held up due to a third party claim by providing acceptable security. This security might include evidence that the claim is covered by insurance or a surety bond.
9.6.7 Clarifies that owner payments received by a contractor for work performed by subcontractors and suppliers are to be held in trust for payment to them. This is intended to protect subcontractors from preference claims by bankruptcy trustees.
9.8.5 Obligates owner to release retainage upon substantial completion of a designated portion of the work, less the value of uncompleted or non-compliant work.
10.3.1 Expands the definition of hazardous materials to include more than asbestos and PCBs.
10.3.2 Entitles contractors (and subcontractors) to appropriate time extensions and recovery of the reasonable cost of shut down, delay and start up for disruption caused by the presence of hazardous materials.
10.3.3 Limits contractor (and subcontractors) liability for hazardous materials and substances to losses caused solely by the contractor (or subcontractor). This shields contractors (and subcontractors) from liability where joint or contributory negligence is alleged.