By Kushnick Pallaci PLLC | www.nyconstructionlaw.com
Introduction
Whether you're building a high-rise in Manhattan or renovating a brownstone in Brooklyn, chances are someone on your team will suggest using an AIA contract. These standardized agreements—created by the American Institute of Architects—are widely used in construction projects across New York. But just because they’re common doesn’t mean they’re always right for your job.
At Kushnick Pallaci PLLC, we help contractors, owners, developers, and design professionals understand what they’re signing—and, just as importantly, what they’re not. Here’s what you need to know about AIA contracts in NY, and how to protect your interests before you sign on the dotted line.
What Are AIA Contracts?
AIA contracts are standardized legal documents developed by the American Institute of Architects. They're used to formalize relationships and responsibilities between project participants—owners, contractors, architects, and subcontractors.
These agreements aim to streamline the contracting process and provide a balanced starting point. But "balanced" is the key word: depending on the form, AIA agreements can favor one party more than the other (often the architect or owner), which means modification is often essential.
AIA contracts cover every phase of a project—from design and bidding to construction and close-out.
Common AIA Forms Used in NY Construction
If you’re working in New York, you’ve probably come across some of the following AIA forms:
-
A101 – Standard Form of Agreement Between Owner and Contractor (Stipulated Sum): Used when there’s a fixed price for the work.
-
A201 – General Conditions of the Contract for Construction: This is the backbone of most AIA contracts and governs how the parties interact (e.g., payment procedures, dispute resolution, delays, etc.).
-
B101 – Standard Form of Agreement Between Owner and Architect: Sets the terms for architectural services and responsibilities.
Other commonly used forms include:
-
G702/G703: Pay application forms
-
A401: Agreement between contractor and subcontractor
-
C401: Agreement between architect and consultant
These documents are meant to work together, but they’re not one-size-fits-all.
Key Provisions to Watch For
Even experienced contractors and owners sometimes overlook key terms in AIA contracts. If you’re not paying attention, you could be signing on to more risk than you realize. Here are some provisions to keep a close eye on:
1. Payment Terms
Make sure the payment schedule is realistic and tied to objective milestones. Review retainage provisions and timing for change order payments.
2. Change Orders
How are changes handled? Can the architect unilaterally decide whether a change is warranted? Is the pricing method defined?
3. Delay and Force Majeure Clauses
Does the contract account for delays caused by weather, labor shortages, material lead times, or government shutdowns? Can you recover costs or just time?
4. Indemnification
Who is responsible if something goes wrong—like an injury on-site or a construction defect down the road?
5. Dispute Resolution
Are you locked into arbitration? Is litigation allowed? What court has jurisdiction?
If any of this is unclear—or not aligned with your role in the project—it’s time to revise the form.
When to Customize an AIA Contract for Your Project
AIA contracts are templates. They're meant to be edited.
You should consider customizing the agreement if:
-
You’re dealing with a complex or multi-phase project
-
You want to include NY-specific laws, such as Lien Law Article 3-A requirements
-
The contract involves private residential work, where added consumer protections apply
-
You want to adjust termination rights, liquidated damages, or insurance requirements
-
You’re concerned about change order abuses or unfair delay claims
Too often, parties rush to sign “standard” contracts just to get started—only to end up in court months later.
The Risks of Using AIA Boilerplate Without Legal Review
Just because an AIA form is widely used doesn’t mean it’s safe to use blindly. Here’s what we see all the time:
-
Contractors agreeing to payment terms that make cash flow impossible
-
Owners surprised to learn they waived rights to pursue certain claims
-
Disputes over change orders that weren’t clearly defined
-
Arbitration clauses kicking in unexpectedly—and expensively
Using a boilerplate contract without review can cost you far more in litigation than it would have to get it right at the start.
Need help avoiding that? Check out our Construction Litigation Services to see how we help clients resolve disputes caused by unclear or unfair contract language.
How Kushnick Pallaci PLLC Helps Contractors & Owners Modify AIA Forms
At Kushnick Pallaci PLLC, we’ve reviewed and revised hundreds of AIA contracts for clients throughout New York. Whether you’re a contractor, subcontractor, owner, or developer, we can:
-
Review AIA contracts and identify hidden risks
-
Modify provisions to better reflect your project realities
-
Add custom riders or exhibits
-
Negotiate contract terms with opposing parties
-
Enforce AIA contract rights in litigation or arbitration
We don’t just “look over” the form—we explain what each clause really means in your specific context. That way, you go into every project fully informed and protected.
Conclusion
AIA contracts are useful tools—but only when used thoughtfully and customized to your needs. Whether you’re working on a $100,000 renovation or a $10 million development, don’t treat the contract like a formality. It’s the foundation of the entire project.
Let Kushnick Pallaci PLLC help you review, revise, and negotiate your AIA construction contracts so you can build with confidence.
📞 Call Today: (631) 752-7100
📍 Visit Us: www.nyconstructionlaw.com
📧 Email: vtp@kushnicklaw.com
🔗 Related Services:
No comments:
Post a Comment