New AIA Design-Build Documents Place Risk and Uninsurable Exposures to Design-Builders that are Not Flowed Down
AIA just released 7 new design-build standard contract documents. In 2004, some commentators pointed out that they thought there was a mistake in the AIA A141, which provides a complete warranty for the Work to include both the design and construction of a project. Unfortunately for design-builders, this risk warranty DOES NOT flow down to the design professional that is likely stamping the design documents (see AIA B143, Section 2.2). Therefore, the design-builder appears to be left with all of the risk of giving a warranty that is both elevated beyond the standard of care and uninsurable. In contrast, the architect is protected with the ordinary and lower professional standard of care. Considering that a core value of publishing standard construction contract documents is to provide predictability and consistency, this inconsistent treatment of risk is quite surprising.
The Master Builders of Iowa’s Articles of Incorporation state in part that the purpose of the Association is “to promote and establish fair dealings and equitable relations between contractors engaged in building construction and between owners, engineers, architects, subcontractors, labor and the general public”. For many years the Industry relations activities of the Association were facilitated through an Industry Relations Committee comprised of Regular and Associate members. In 2004, the Industry Relations Committee gave way two new and distinct groups that carry on much of the industry relations activities for the Association.
The Iowa Construction Industry Forum (ICIF) was born from the Strategic Plan and is comprised of representatives of the Master Builders of Iowa, the American Institute of Architects, Iowa Chapter and the Consulting Engineers Council of Iowa. The group meets three to four times a year with an ongoing agenda devoted to items of common interest among the parties. The responsibility to schedule and develop the meeting agendas rotate on an annual basis. The group has sponsored educational programs, created policies on risk allocation and taken positions on legislative issues very effectively since its inception. It also serves as a forum for the parties to promote their respective points of view and to discuss issues important to the construction industry.
The 2nd offspring of the former Industry Relations Committee is the Regents Liaison Committee. The Regents Liaison Committee is comprised of representatives from the Master Builders of Iowa and facilities representatives from the University of Iowa, Iowa State University and the University of Northern Iowa. Topics range from project delivery systems, relationships between the regents institutions and the local contracting industry and a host of other subjects of mutual interest. Occasionally the group is called upon to trouble shoot or address issues proactively and provide solutions before problems develop. The Liaison group also serves as a tool to educate members and representatives of the committee have served on industry panels to address trends and provide the owner / contractor perspective on issues of relevance to the construction industry.
Industry relations continue to be a top priority of the Association and the Association is always looking for new and different ways to work with a variety of industry groups to advance the vision and mission of the Association. MBI representatives do an excellent of representing the contractor’s point of view on issues that can have an impact on profitability and fair dealings between MBI members, owners and design professionals.
Links of Interest:
- American Institute of Architects, Iowa Chapter
- American Council of Engineering Companies of Iowa
- Iowa Association of School Boards
- Associated General Contractors of America - Industry Relations
- Iowa State University, AGC Student Chapter
- University of Northern Iowa Construction Management Club
- Iowa Department of Corrections
- Iowa Public School District
- Cities in Iowa Over 3,000
- Department of Administrative Services
- Board of Regents
- Iowa DOT
- County Supervisors