Content.

Synopsis

Purpose and related documents

Changes from the previous edition

 

Synopsis.

AIA Document A105–2017 is a stand-alone agreement with its own general conditions. AIA Document A105–2017 is for use on a project that is modest in size and brief in duration, and where payment to the contractor is based on a stipulated sum (fixed price). A105-2017 replaces AIA Document A105-2007, Standard Form of Agreement Between Owner and Contractor for a Residential or Small Commercial Project. 

Although A105 and B105 share some similarities with other agreements, the Small Projects family should NOT be used in tandem with agreements in other document families without careful side-by-side comparison of contents. For use and execution of a document, see its instructions »

 

Purpose and related documents.

AIA Document A105–2017 replaces AIA Documents A105–1993, and A205™–1993. The combined new Agreement is intended to be used for a residential or small commercial project that is modest in size and brief in duration, and where payment to the Contractor is based on a stipulated sum (fixed price). 

AIA Documents A105–2017 and B105™–2017, Standard Short Form of Agreement Between Owner and Architect, comprise the Small Projects family of documents. Within a document family, common definitions and parallel phrasing combine to form a consistent structure in support of all the major contractual relationships on the construction project. A105 is specifically adopted by separate reference into the B105 as described below.

For larger and more complex projects, other AIA agreements are more suitable, such as A104™–2017, Standard Abbreviated Form of Agreement Between Owner and Contractor. 

For even larger or more complex projects, Owner/Contractor agreements A101®–2017, A102™–2017, or A103™–2017 combined with A201®–2017, General Conditions of the Contract for Construction, are appropriate.

 

Changes from the previous edition.

Revisions were made to align AIA Document A105–2017 with the procedures established in AIA Document A201–2017, streamlining those procedures appropriately for the smaller, less complex project. The following are some of the significant changes made to the contents from AIA Document A105–2007.

Title. The title of the document has been changed to better reflect that it is a short form agreement that can be used on a range of projects where a streamlined agreement with incorporated general conditions is appropriate. Selection of an appropriate contract should be made after a careful evaluation of project risk and complexity.

Article 2 – Date of Commencement and Substantial Completion

§ 2.1 Section 2.1 has been separated into three subsections for clarity and consistency with other AIA owner-contractor agreements.

§ 2.2 This section establishes the date of commencement as the date of the Agreement unless another date is included in the fill point.

§ 2.3 A checkbox has been added so that the parties can select whether Substantial Completion of the entire Work will be achieved no later than a specified calendar date or within a certain number of days from the date of commencement.

Article 5 – Insurance

The insurance section has been expanded and modified to track the insurance requirements set forth in the 2017 owner-contractor agreements. The AIA encourages you to discuss the insurance and bonds requirements of AIA Document A105–2017, with your insurance broker and legal counsel so that appropriate insurance can be put in place before the start of construction.

Article 6 – General Provisions

§ 6.5 AIA Document A105–2017 now allows the parties to provide notice by email.

Article 7 – Owner

§ 7.1.3 Similar to the long-standing provision in other AIA owner-contractor agreements, AIA Document A105–2017 now allows the Contractor to request proof that the Owner has made the necessary financial arrangements to fulfill its obligations under the Contract. The Contractor is not obligated to commence the Work until evidence that financial arrangements have been made is provided.

§ 7.3 Revisions to this section clarify that when the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents, the Owner may correct the Work and the Architect may withhold or nullify a Certificate for Payment to the extent reasonably necessary to reimburse the Owner for the cost of correction. Previously, this provision required an adjustment to the Contract Sum to effectuate the withholding. An adjustment to the Contract Sum is impractical because it would require agreement by the Contractor.

Article 8 – Contractor

§ 8.5 Similar to AIA Document A201–2017, this new provision requires that material, equipment, and other special warranties (e.g. a twenty-year roof warranty) must be written in the name of the Owner or be transferable to the Owner and will commence in accordance with Section 12.5.

Article 12 – Payments and Completion

§ 12.3 This section has been revised to clarify that the Architect has three options with respect to the Contractor’s Application for Payment. The Architect may: (1) issue a Certificate for Payment for the full amount of the Application; (2) issue a Certificate for Payment for a portion of the Application and notify the Contractor and Owner of its reasons for withholding certification of a portion of the Application; or (3) withhold certification of the entire Application and notify the Contractor and Owner of its reason for withholding certification.