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 without 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. AIA Document A134–2019 is a comprehensive agreement designed for use on construction projects where the construction manager serves both as an adviser during preconstruction and as the constructor. Unlike the AIA Document A133–2019, this document does not include a guaranteed maximum price (GMP), employing a cost-plus-a-fee method instead. This allows for cost flexibility as the owner monitors the budget through periodic reviews of a control estimate that evolves alongside the project. The construction manager’s services are split into two distinct phases—preconstruction and construction—which can run concurrently to expedite project timelines.
Benefits of Using A134–2019
The purpose of A134–2019 is to provide a framework that accommodates significant flexibility in financial management, allowing costs to adapt dynamically without a fixed cap. This is particularly beneficial for complex projects where costs are not fully known at the beginning of construction. The document establishes a collaboration plan between the owner and the construction manager, ensuring alignment through regular financial assessments of the control estimate.
When to Use A134–2019
AIA Document A134–2019 is particularly suited for construction projects requiring high adaptability in terms of costs and resources, where the scope is likely to develop over time. Projects benefiting from this agreement are those where the ability to adapt financially outweighs the need for a guaranteed price limit, allowing the project to respond dynamically to market and site conditions.
Customization for Project-Specific Needs
While AIA Document A134–2019 offers a comprehensive structure for projects where the construction manager serves both as adviser and constructor under a cost-plus-fee arrangement without a Guaranteed Maximum Price (GMP), it’s essential to customize this agreement to address the particular needs of each project. Each construction project presents its own set of variables, including local regulations, site-specific challenges, and stakeholder expectations, which a standard form like AIA Document A134–2019 may not fully encompass. By modifying the existing terms or incorporating additional provisions, the agreement can be tailored to align with the project’s unique requirements, ensuring clear role definitions, effective risk management, and compliance with legal standards. Without these customizations, there is a risk of leaving critical aspects unaddressed, potentially leading to misunderstandings or conflicts during the project’s development.
Maximizing Project Success With A134–2019
AIA Document A134–2019 provides a versatile framework that supports dynamic financial and operational management in construction projects where adaptability is crucial. It ensures collaboration between the owner and the construction manager, facilitating successful project delivery by allowing for evolving project designs and cost structures. With its emphasis on open financial tracking and advisory integration, A134 supports strategic project advancement, ensuring that developments align with both financial and structural goals while maintaining robust oversight and collaboration among stakeholders.
Contact us today to ensure AIA Document A134–2019 is customized for your project and keeps construction flexible, coordinated, and on track.
