Contract Relationships

And Related AIA Contract Documents


Design - Bid- Build

  • For use when the owners project is divided into separate contracts for design (Architect) and construction (Contractor)
  • Suitable for conventional project delivery (design-bid-build)
  • Owner retains Architect
  • Architect and his/her Consultants prepare drawings and specifications
  • Architect assists Owner in obtaining Bids/proposals, and then Owner awards contract(s) for construction
  • Contractor(s) and Surety(ies) obligate to Owner for bid, performance and payment bonds
  • Contractor and Subcntractors build the work
  • Construction Manager as Advisor

  • Owner retains an Architect and a Construction Manager, who acts as an additional adviser to the Owner
  • Prime Contractor(s) and Subcontractor(s) are responsible for construction.
  • Construction Manager gives Owner construction management advice through design and construction phases - increased expertise in managing a project from start to finish
  • Construction Manager as Constructor

  • Single party (Construction Manager) provides construction management services in pre-construction phase AND then completes construction (Constructor)
  • Gives Construction Manager (Constructor) responsibility and control over construction work via direct contract(s) with Subcontractor(s)
  • Construction phase services are paid on the basis of cost of work plus a fee either with or without a Guaranteed Maximum Price.

  • Design - Build

  • Owner eners into a contract with a single entity Design-Builder
  • Design-Builder is then obligated to both design and construct the project.
  • Owner may also hire a consultant to assist Owner in working with Design-Builder.
  • Design-Builder then enters into contracts wih Atchitect and/or Construction Contractors if necessary
  • Design-Bulder may be:
    • a developer or Single Purpose Entity (design and construction in one shop)
    • an Architect-led organization
    • a Contractor-led organization (most often the case)

    Prog Mgmt - Multiple

  • For use in a program with more than one project. Suitable for conventional project delivery (design-bid-build)
  • Owner retains a Program Manager to assist the owner in an advisory capaciry, on matters that impact the entire program, during design and construction.
  • Owner retains a Design Manager to assist the owner and the program manager in developing and establishing program. Design Manager develops the program's Design Standards and performs schematic design and design development services for each project to develop a Transfer Package for the architect of record for each project in the program.
  • Owner retains Architect(s) of Record to complete the design and perform construction administration services for each Project.
  • Contractor(s) and Subcontractors build the work
  • Prog Mgmt - Single

  • For use on a single project. Suitable for conventional project delivery (design-bid-build)
  • Owner retains a Program Manager to assist the owner in an advisory capacity on matters that impact the project during design and construction
  • Owner retains an Architect to design the project and perform construction administration services
  • Contractor(s) and Subcontractors build the work

  • IPD - Transitional

  • Integrated Project Delivery is an emerging process and these Transitional Agreements are a comfortable first step to IPD.
  • A collaborative project delivery approach that utilizes the talents and insights of all project participants through all phases of design and construction.
  • Structured similar to existing Construction Manager as Constructor agreements.
  • IPD - Multi-party

  • These Agreements more fully integrate the project parties into IPD.
  • Owner, Architect and Contractor, at a minimum, enter into one contract(Multi-Party Agreement).
  • The Multi-Party Agreement alows for sharing of risk and reqard in a fully integrated collaborative process.
  • IPD - Single Purpose

  • These Agreements more fully integrate parties into IPD.
  • Creates a limited liability company (Single Purpose Entity) for the purpose of furnishing the planning, design and construction of the project through separate contracts with appropriate entities.
  • The Single Purpose Entity (SPE) allows for complete sharing of risk and reward in a fully integrated collaborative process.