Abbreviated Form of Agreement Between Owner and Contractor
AIA Document A104 – 2017 (which replaced the A107-2007), Abbreviated Form of Agreement Between Owner and Contractor is a stand-alone agreement intended for construction projects of limited scope and complexity. The AIA Document A104–2017 integrates its own internal “general conditions”, making it suitable for projects where simplicity and clarity are required. This agreement can be used with a variety of payment methods, including a stipulated sum, cost of the work plus a fee, and includes options both with and without a guaranteed maximum price (GMP). For projects utilizing a cost-plus method, AIA Document A104–2017 incorporates an Exhibit A, which supports detailed cost determination.
Ideal Projects for A104–2017
AIA Document A104–2017 is intended to be used on projects where the project’s scope does not demand the complexity of the longer and more detailed AIA contracts. Being a stand-alone document, it consolidates general conditions within the agreement, eliminating the need for additional documents such as the AIA Document A201-2017, General Conditions. The versatility of AIA Document A104–2017 allows for payment flexibility, enabling project alignment with financial expectations through clear designation of payment methods, including the possibility of a fixed fee or a GMP.
Comparison with Other AIA Agreements
Its use is preferable over AIA Document A105–2017, the Standard Short Form of Agreement Between Owner and Contractor when the project demands more than a basic short-form agreement but doesn’t reach the complexity threshold where the longer AIA construction contracts, such as the AIA Document A101-2017 or the AIA Document A102–2017, which incorporates the general conditions from AIA Document A201-2017, General Conditions.
Customization for Project-Specific Needs
While AIA Document A104–2017 provides a streamlined and efficient framework for managing construction projects with limited scope and complexity, it is important to recognize that this standard form cannot be fully effective without customization for each specific project. Every construction project has distinct characteristics, requirements, and considerations that a generic contract may not capture. The standard language of A104 addresses general needs but lacks the specificity needed for unique project factors like local regulations, site-specific challenges, and stakeholder expectations. Therefore, customizing the AIA Document A104–2017 —whether through modifications to existing terms or adding new provisions—is essential for alignment with a project’s unique demands. These adjustments help define roles, manage risks, and fulfill legal obligations, ultimately safeguarding the interests of all parties involved. Without such customization, the document may leave critical gaps or create ambiguities, potentially leading to misunderstandings or disputes during the project.
Benefits of Using A104–2017
Overall, AIA Document A104–2017 provides an effective solution for managing projects of limited scope with straightforward contracting needs, offering a blend of flexibility and simplicity. Through its integrated conditions and variety of payment models, it ensures projects are managed efficiently, supporting both owner and contractor needs while promoting clarity and alignment with financial and operational objectives.
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