We negotiated an AIA Document A141–2014, Agreement Between Owner and Design-Builder, for our client, a modular construction company, to construct nine residential homes. The agreement addresses the unique financial dynamics of modular projects, where large upfront investment in materials and labor is required before on-site construction begins. Key provisions include a structured payment schedule tied to procurement, delivery, and completion of each home. These payments were due upon notification of readiness to begin off-site fabrication, incentivizing prompt payment by the owner while ensuring our client secures necessary funding for materials procurement. We negotiated terms that reconcile the project’s phased delivery schedule with the owner’s desire for traditional construction contract protections, such as payment escrows and holdbacks. This balanced approach safeguards our client’s upfront investment while giving the owner reasonable assurances of performance, quality, cost and schedule.
