Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
In the Construction Manager as Constructor (CMc) project delivery method, the Construction Manager is hired early in the design process, offering pre-construction services and then transitioning to the role of general contractor during the construction phase. This method allows for early cost input and collaboration during the design phase of a project while providing a single point of contact for construction. AIA Document A133–2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price specifies the contractual relationship between an owner and a construction manager who serves not only as an adviser during the preconstruction phase but also takes on the role of constructor. This dual capacity ensures that the construction manager oversees initial planning and project execution with a guaranteed maximum price (GMP) established for cost control.
How the GMP Works
When the design of the project is sufficiently developed such that the CMc can agree to a GMP, the AIA Document A133–2019 requires the CMc to provide the owner with a GMP proposal, which, upon acceptance through a GMP Amendment (Exhibit A), binds the construction manager to complete the project within the GMP. The document divides services into preconstruction and construction phases, allowing overlap for an efficient timeline and potential fast-tracking.
When to Use A133–2019
The AIA Document A133–2019 is applicable to projects where a construction manager is the preferred choice for controlling both preconstruction advisory and the actual build. Its suitability shines in projects needing rigorous cost management through a GMP while leveraging the advisement of a skilled construction manager. Compared to AIA Document A132–2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition, where the construction manager serves solely in an advisory role, A133 is more fitting for projects that benefit from this combined expertise to help the project adherence to budgetary constraints and efficient execution.
Customization for Project-Specific Needs
While AIA Document A133–2019 provides a structured framework for projects where the construction manager acts as both adviser and constructor with a Guaranteed Maximum Price (GMP), it’s crucial to customize this agreement to fit the specific demands of each project. Every construction project involves unique factors, including regulatory requirements, site-specific conditions, and stakeholder objectives, which a standard form like AIA Document A133–2019 may not fully address with its standard terms. By tailoring the agreement through modifications or additional provisions, it ensures the contract accurately reflects the project’s unique needs, clearly defines roles and responsibilities, manages risks effectively, and adheres to legal requirements. Neglecting such customizations could result in overlooked details or ambiguities, potentially leading to disputes or misalignments as the project progresses.
Contact us today to ensure AIA Document A133–2019 is tailored to your project’s specific needs and keeps construction on schedule and within budget.
