Video Explaining the Use of Standardized Construction Contracts

Standardized Construction Contracts and Insurance Claims

Purchasing a standardized and industry-accepted form is less expensive than asking an attorney to draft a specific contract from scratch, although on a large project, it is often a good idea to involve counsel to review and/or modify the standardized forms to protect the client’s interests. Generally though, sources that create construction contracts are equipped to protect standardized form users because they are familiar with:

new case law that affects the interpretation of the contracts;
new statutes that affect the interpretation or application of the contract terms;
the need to resolve legal issues that become apparent so that they will not arise in future contracts;
the need to conform to changing building codes and construction-related statutes; and
the need to conform to changing insurance policy wording and regulations.

The most extensively used standardized forms are those that have been developed by the American
Institute of Architects (AIA).

AIA Contract Documents have defined the contractual relationships in the design and construction industry for 120 years.” AIA contracts can save the parties time and money; are up to date and constantly revised, provide assistance in dealing with new design and construction issues. The contracts can now be purchased in MS Word format.

One of the most useful sources of contract documentation is the American Institute of Architects. This organization was established on February 23, 1857, when 13 architects met to create an architecture organization that would “promote the scientific and practical perfection of its members” and “elevate the standing of the profession.” Before this time, anyone could be called an architect, including masons, carpenters, bricklayers, and other members of the building trades.