Representing the development arm of an integrated real estate firm with a portfolio encompassing over $5 billion in projects, we drafted and negotiated the construction agreement for a project in a planned development in a major U.S. metropolitan area. The project comprises a 7-story mixed-use building including around 160 dwelling units, commercial space, and parking. Since our client’s general contractor division was to construct the project, our role focused on ensuring that the development arm’s interests were protected – and aligned with those of its equity partners, as would be required of any developer in any arm’s-length transaction – and we were tasked to negotiate with separate counsel hired to represent the construction arm’s interests. We used AIA Document A102–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price and AIA Document A201-2017, General Conditions of the Contract for Construction to structure a Cost of the Work Plus a Fee agreement with a GMP over $40 million.
