On behalf of the project owner, we negotiated a $3.7 million agreement using AIA Document A101-2017, Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum, for a multi-phased project which encompassed facade and parking lot improvements, landscaping, civil work, monument signage, dry utility service upgrades, Department of Transportation (DOT) sidewalk construction, and constructing a new three-tenant retail shell building. Given the phased nature of the project and pre-existing lease agreements with incoming tenants, we negotiated specific completion deadlines for different parts of the work. These included staggered substantial completion dates for specific tenant spaces, the overall retail shell building, and the balance of the project. To incentivize timely performance and protect the owner’s interests, we incorporated strong liquidated damages provisions tied to the critical tenant handover dates and a provision for an early completion bonus. This strategic approach ensured alignment between the construction schedule and the owner’s leasing obligations.
