CE Construction & Evaluation

Notice deadlines

Workflow

1. Notice within 21 days
2. Submit claim with documentation
3. Architect (IDM) issues initial decision in 30 days
4. Either party may demand mediation
5. Mediation required before binding resolution
6. Binding resolution per agreement

Architect (IDM) duties

• Request additional info if needed
• Reject, approve in whole/part, or suggest compromise
• Render written decision with reasoning
• Decision is condition precedent to mediation

Continuing performance

Both parties continue work pending resolution. Disputes don't stop the project.

Mutual waiver of consequential damages (§15.1.7)

Owner waives lost profits, use, rent, business. Contractor waives lost profits on unperformed work and home office overhead. Direct damages still recoverable.

Special situations

• Architect's own claim: cannot be IDM — Owner names alternative
• Emergency (§15.1.5): contractor proceeds, then claims
• Weather (§15.1.6.2): time only if abnormal; no money

SOV

Contractor's breakdown of contract sum. Submitted before first pay app per A201 §9.2.

SOV best practices

• Match WBS / construction sequence
• Avoid front-loading (Owner protection)
• Detail line items
• Aggregate to MasterFormat divisions

Pay Application forms

• G702: summary cover (totals, retainage, balance)
• G703: line-item continuation (prior, current, stored, % complete)

Architect's certification (A201 §9.4)

To the best of architect's knowledge, information, and belief:

• Work progressed to indicated point
• Quality consistent with contract docs
• Payment is owed

NOT a representation of exhaustive inspection or approval of means/methods.

Reducing certified amount

Architect may reduce. Must notify BOTH Owner and Contractor of reduction and reasons. No Owner approval needed.

Stored materials (§9.3.2)

Eligible if at approved location, properly insured, title transfers to Owner on payment, with documentation.

Retainage

5-10% typical. Reduced to 5% (or 0%) at Substantial Completion. State law may regulate.

Pay-when-paid vs pay-if-paid

• Pay-when-paid: GC pays sub within reasonable time after Owner pays (timing)
• Pay-if-paid: conditional on Owner payment (risk shift — often unenforceable)

Lien waivers

Conditional (effective on payment) or unconditional (immediately effective). Required with each pay app.

Substantial Completion (G704)

• Contractor request + punch list
• Architect inspection (may add items)
• G704 signed three-way
• Certificate of Occupancy from AHJ
• Retainage reduced
• 1-yr correction period begins
• LDs cease
• Owner property insurance replaces Builder's Risk
• Beneficial occupancy permitted

Final Completion

• Punch list complete
• Record drawings (as-builts)
• O&M manuals
• Warranties (manufacturer + system)
• Owner training on systems
• Attic stock
• Final cleaning per Division 01
• Test reports
• Final lien waivers (unconditional, all subs)
• G707 Consent of Surety if bonded
• Affidavit of payment of debts (§9.10.2)
• Final certificate
• Final payment + retainage release

Owner-side deliverables

• All permits — final inspections
• Health Dept signoff (food, healthcare)
• Fire Marshal final
• Elevator certification
• LEED/sustainability docs

Common delays

• Outstanding punch list
• Missing test reports
• Sub-contractor lien waivers
• Manufacturer warranties (60-90 day delay common)
• O&M manuals incomplete

Submittal types

Review timelines (typical)

Architect's review per A201 §3.12

• Reviews for general conformance with design intent
• Does NOT verify dimensions, quantities, fabrication
• Does NOT approve means/methods
• Does NOT shift responsibility unless contractor specifically informs in writing AND architect approves in writing

Review stamps

Lessons

• Long-lead items: submit early
• Coordination submittals across trades (MEP overlays)
• Approval before fabrication
• Late submittals create scheduling pressure

When to use each

ASI

• Interpretations, clarifications, minor changes
• Cannot change cost or time
• If cost/time impact → convert to CO or CCD
• Written record of verbal field direction

Change Order (CO)

• All three parties agree on scope, cost, time
• Adjusts Contract Sum and Time
• Backed by SOV adjustment
• Permits may require AHJ resubmittal for major changes

CCD

• Work proceeds before agreement on cost/time
• Owner + Architect sign; Contractor must proceed
• Compensation determined later
• Per A201 §7.3.7 if no agreement:
  • Mutual lump sum
  • Unit prices
  • Cost + agreed fee
  • As determined by Architect (subject to claim)

When CCD preferable

• Schedule pressure won't wait
• Scope clear but cost still being analyzed
• Disputed change but Owner needs work performed

Constructive change

Owner/Architect action effectively changes work without formal CO:

• Overly restrictive interpretation
• Acceleration directive
• Defective specs requiring extra work
• Contractor's remedy: claim per §15.1

Bond types

Miller Act

Federal projects > $150,000 require performance AND payment bonds, typically 100% each. State "Little Miller Acts" follow similar pattern.

Private projects

At Owner's discretion. Smaller projects may forgo bonds (saving 1-3% premium) and accept risk.

Insurance — Owner-required typical

COI (Certificate of Insurance)

• Required BEFORE contractor begins
• Owner named as additional insured (§11.1.4)
• 30-day notice of cancellation
• Verified annually

Waiver of subrogation (§11.3.7)

Owner and Contractor waive rights against each other and their insurers for damages covered by property insurance.

E&O (Architect)

• Claims-made basis
• Owner may require $1M-$5M minimum
• Tail coverage (ERP) essential at retirement/closure

Termination by Contractor (§14.1)

Grounds (work stopped 30+ days, not Contractor fault):

• Court/government order
• Owner failure to pay (after 7-day notice + cure)
• Failure to furnish reasonable evidence of financing
• Repeated suspensions >100% scheduled time

Procedure: 7-day notice. If not cured, may terminate.

Compensation: Work executed + proven loss (materials, equipment) + reasonable OH&P.

Termination by Owner for Cause (§14.2)

Grounds:

• Contractor refuses/fails to supply enough workers or materials
• Fails to pay subs (when Owner pays)
• Persistent disregard of laws/codes
• Material breach

Procedure:

• Architect certifies sufficient cause
• 7-day notice
• Owner may terminate

Compensation:

• Owner finishes work (using contractor's tools/materials)
• Contractor paid only if costs to finish < unpaid balance
• If costs exceed, Contractor + Surety pay difference

Suspension by Owner for Convenience (§14.3)

• Suspend in whole or part
• Cost and schedule adjustment to Contractor
• No profit on suspended work
• Cannot substitute for termination for cause

Termination by Owner for Convenience (§14.4)

• Owner may terminate at any time
• Compensation: work executed + termination costs + reasonable OH&P on unexecuted work (if specified)

Architect's role

• Certifies sufficient cause for §14.2 termination
• Document everything precisely
• Continue impartial role
• Get legal counsel — termination is high-stakes

The G-series — administrative forms used during construction

Most important to memorize

Owner-Architect amendment series

Decision/notice

B-series — Owner-Architect agreements

Main agreements

Scope-of-services modules (paired with B102)

A-series — Owner-Contractor agreements

Main agreements

General conditions

Bidding / Procurement

What document do I use?

Is there a change to the work?
├── Yes
│   ├── No cost or time impact?
│   │   └── ASI (G710) — minor change
│   ├── Owner directs immediately, cost disputed?
│   │   └── CCD (G714) — contractor proceeds, claim later
│   └── Agreed cost and time?
│       └── CO (G701) — signed by all three parties
└── No change
    ├── Need clarification?
    │   └── RFI (G716 or similar)
    ├── Substitution request?
    │   └── Substitution Request form (Division 01)
    ├── Submittal review?
    │   └── Submittal log + stamp
    └── Schedule update?
        └── Updated schedule per spec section 01 32 00

Communication tools

• Field Report (G711) — document site visit
• RFI — questions and clarifications
• Submittals — shop drawings, samples, mockups
• Meeting Minutes — record decisions
• Issue Log — track open items

When in doubt

• Document everything in writing
• Use AIA forms when available
• Check Owner-Architect agreement for additional services trigger
• Notify all affected parties

Per A201 §9.8

Step 1 — Contractor notifies

Contractor's written notice that work is sufficiently complete + submitted punch list

Step 2 — Architect inspects

Architect determines if substantial completion achieved

• Yes: proceed to Step 3
• No: notify contractor of incomplete items; repeat when ready

Step 3 — Architect prepares G704

Certificate of Substantial Completion containing:

• Date of substantial completion
• Punch list with time to complete
• Responsibilities (security, maintenance, utilities, insurance, damage)
• Warranty start date (unless otherwise specified)

Step 4 — All three sign

Owner, Architect, and Contractor sign G704

What triggers at Substantial Completion

• ✅ Owner can occupy for intended use
• ✅ 1-year correction period begins
• ✅ Warranties begin (unless otherwise specified)
• ✅ Retainage typically reduced (e.g., 10% → 5%)
• ✅ Risk of loss transfers to Owner
• ✅ Liquidated damages STOP (if any)
• ✅ Final completion date target set

What doesn't change

• Contractor obligations to complete punch list
• Warranties (separate from 1-year correction period)
• Statute of repose timing (varies by state)
• Final payment requirements

Partial Substantial Completion (§9.9)

• Owner may occupy portion before whole project complete
• Requires written agreement: Owner + Contractor + Architect
• Identifies occupied portion clearly
• Documents responsibilities for occupied portion
• Insurance adjustments must be coordinated

Who carries what

Owner typically carries (per A201 §11.2)

• Property insurance (Builder's Risk during construction)
  • All-risk / special perils form
  • Covers site materials, equipment, work in progress
  • Owner adds Contractor + Subs as additional insureds
  • Continues until substantial completion
• General liability (premises)
• Loss of use insurance (optional)

Contractor typically carries (§11.1)

• Commercial General Liability (CGL)
  • Bodily injury / property damage
  • Per occurrence + aggregate limits
  • Includes products & completed operations
  • Names Owner, Architect, Consultants as additional insureds
• Automobile liability
• Workers' Compensation (state-required)
• Employer's Liability
• Other per supplementary conditions

Architect carries

• Professional Liability (E&O)
  • Claims-made basis
  • Tail coverage for closure/transition
  • Tied to scope of services

Subcontractors carry

• Required by contractor — flow-down provisions
• Typically include CGL, Auto, WC at minimum

Builder's Risk vs. Property

• Builder's Risk: During construction; covers work in progress
• Property: After substantial completion; Owner's normal property coverage
• Transition managed at substantial completion

Waivers of Subrogation (§11.3.7)

• All parties waive rights against each other for losses covered by insurance
• Prevents insurance disputes from undermining the project team
• Critical clause in A201

Bid documents (in Project Manual but NOT contract)

• Advertisement / Invitation to Bid
• Instructions to Bidders (AIA A701)
• Supplementary Instructions
• Bid forms
• Bid security info
• Performance & Payment bond forms

Bid bonds

• Form: Surety guarantee bidder will honor bid
• Typical amount: 5-10% of bid
• Forfeited if: Low bidder refuses award

Public bid opening process

1. Architect conducts opening with Owner
2. Bids read aloud
3. Bid log documents amounts, alternates, addenda
4. NO announcement of "apparent low bidder"
5. Evaluation: 7-10 days typical
6. Award notice to ALL bidders

If all bids exceed budget (Owner's 4 options)

1. Rebid (architect assists at no fee)
2. Increase budget
3. Revise scope (architect redesigns at no fee)
4. Abandon project

Three primary construction bonds

Miller Act (federal)

• Performance + Payment bonds required
• All federal construction over $150,000
• States: "Little Miller Acts" for state work

Builder's Risk insurance

• Covers property under construction (fire, theft, vandalism)
• Typically Owner-provided per A201 §11
• Special perils form preferred
• Covers materials on/off site (with conditions)

Contractor's required insurance (A201 §11.1)

• Commercial General Liability
• Automobile Liability
• Workers' Compensation
• Employer's Liability
• Other types per supplementary conditions

Time limits (A201)

• 21 days to file a claim from event/recognition
• Initial Decision Maker (IDM) decision: 10 days
• Mediation: condition precedent to binding resolution

Order of resolution

1. Claim filed with IDM (default: architect)
2. IDM decision within 10 days
3. Mediation (mandatory before binding)
4. Binding resolution (arbitration or litigation, per agreement)

Common claim types

• Time extensions: delays beyond contractor control
• Cost adjustments: changed conditions, owner-caused delays
• Concealed/unknown physical conditions (§3.7.4)
• Differing site conditions: subsurface, hazardous materials

Force majeure (§8.3.1)

Excuses time only (not cost) for:

• Acts of God, fire, weather
• Labor disputes, embargoes
• Owner delays
• 21-day notice required

Methods to recover schedule

• Crashing — adding resources/overtime. More $.
• Fast-tracking — overlapping activities. More risk.
• Re-sequencing — change logic where possible
• Scope reduction — Owner agreement
• Adding shifts — multiple workforce shifts

Cost slope (for choosing crash candidates)

Cost Slope = (Crash Cost − Normal Cost) ÷ (Normal Days − Crash Days)

Lower slope = cheaper to crash → crash these first.

Critical path & float

• Total float = time activity can slip without delaying project
• Free float = time activity can slip without delaying its successors
• Critical path activities have zero total float
• Float can go negative (project is late)

Liquidated damages

• Daily $ amount for unexcused delay past substantial completion
• Must be reasonable estimate of damages (not a penalty)
• Stops at substantial completion (not final)

Owner termination of Contractor

For cause (§14.2)

• Repeated refusal/failure to supply enough workers/materials
• Failure to pay subcontractors
• Repeated disregard of laws/orders
• Other substantial breach

Process:

• 7-day written notice
• Architect must certify cause
• Owner may take possession of work
• Withhold further payment until completion
• Contractor reimburses Owner for excess costs

For convenience (§14.4)

• No cause needed
• Contractor entitled to:
  • Payment for work executed
  • Reasonable termination costs
  • Reasonable overhead and profit on unexecuted work (if specified)

Contractor termination of Owner (§14.1)

Permitted if:

• Owner failure to pay 30 days after Architect's certificate
• Work suspended >30 consecutive days
• Owner failure of substantial obligation
• 7-day written notice required

Quick reference

Selection Methods

• QBS — qualifications first, price negotiated after
• Best Value — weighted score of quals + price
• Low Bid — sealed bids, lowest responsive bidder wins

Four types

• Shop drawings — contractor/fab-prepared
• Product data — manufacturer cut sheets, specs
• Samples — physical examples
• Mock-ups — full-size site assemblies

Review stamps

• No Exceptions / Approved — proceed
• Make Corrections Noted — proceed with notes
• Revise & Resubmit — do NOT proceed
• Rejected — replace

Decision logic

Flow

• Agreement on cost + time → CO
• Must proceed, disputed terms → CCD
• No cost/time/design impact → Minor Change
• Clarifying docs → ASI (G710)
• Genuine ambiguity → RFI

Documents

• G702 — Application & Certificate for Payment (cover)
• G703 — Continuation Sheet (SOV line items)
• SOV — Schedule of Values, set before first pay app

Retainage

Typical 5–10% withheld. Released at substantial completion (less punch list amounts); final balance at final completion.

Grounds to WITHHOLD (§9.5.1)

• Defective work not remedied
• Third-party claims filed or likely
• Failure to pay subs/materials
• Damage to Owner or separate contractor
• Schedule slippage threatening LDs
• Persistent failure to follow docs

Architect's options

• Reject + require correction (§12.2)
• Require testing (cost on contractor if non-conforming)
• Accept with deduction via CO (needs Owner consent)
• Recommend Owner stop work

Correction period vs. warranty

• 1-yr correction (§12.2.2) — contractual, NOT a warranty
• Warranties — separate, often longer, per specs & mfrs

Uncovering work (§12.1)

• Architect requested it, contractor covered anyway → contractor pays
• Architect didn't request; conforms → Owner pays
• Architect didn't request; non-conforming → contractor pays

Substantial completion

• Owner can occupy / use for intended purpose
• Certificate: G704
• Punch list created
• Warranties typically begin
• Retainage reduced (less punch list)

Final completion

• All punch list resolved
• All closeout docs submitted
• Final certificate of payment issued
• Remaining retainage released

Closeout docs

• Record drawings (as-builts)
• O&M manuals
• Warranties
• Lien waivers + Consent of Surety
• Certificate of Occupancy
• Spare parts / attic stock
• Commissioning reports

What architect DOES

• Visits site at intervals appropriate to stage
• Endeavors to guard Owner against defects
• Reviews submittals for general conformance with design intent
• Acts as initial interpreter, endeavors to be impartial
• Has authority to reject non-conforming work
• Certifies pay applications

What architect DOES NOT

• Control means, methods, sequences, procedures
• Supervise the work / continuous on-site
• Bear responsibility for contractor safety
• Guarantee the contractor's performance
• Issue stop-work orders (Owner only)