Synopsis.
AIA Document B104–2017 is intended for use on construction projects of limited scope and complexity. B104-2017 replaces B104-2007, Standard Form of Agreement Between Owner and Architect for a Project of Limited Scope. B104-2017 is an abbreviated version of B101™–2017. B104 contains a compressed form of basic services with three phases: design, construction documents, and construction. This document may be used with a variety of compensation methods. B104–2017 is intended to be used in conjunction with A104™–2017, Standard Abbreviated Form of Agreement Between Owner and Contractor, which it incorporates by reference.
For more complex projects, parties should consider using one of the following AIA owner/architect agreements: B101–2017 or B103™–2017. For smaller and less complex projects, parties may wish to consider B105™–2017, Standard Short Form of Agreement Between Owner and Architect.
For all document details and a record of changes, see the summary »
Using B104–2017.
Cover Page.
Date. The date represents the date the Agreement becomes effective. It may be the date that an oral agreement was reached, the date the Agreement was originally submitted to the other party, the date authorizing action was taken or the date of actual execution. Professional services should not be performed prior to the effective date of the Agreement.
Parties. Parties to this Agreement should be identified using the full legal name under which the Agreement is to be executed, including a designation of the legal status of both parties (sole proprietorship, partnership, joint venture, unincorporated association, limited partnership or corporation [general, limited liability, closed or professional], etc.). Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached.
Project. The proposed Project should be described in sufficient detail to identify (1) the official name or title of the facility, (2) the location of the site, if known, (3) the proposed building usage, and (4) the size, capacity or scope of the Project, if known.
Article 1 – Initial Information
The parties should take care to be as explicit and detailed as possible with respect to the relevant Initial Information.
Article 4 – Supplemental and Additional Services
The parties should take care to be as explicit and detailed as possible with respect to the relevant Initial Information.
§ 4.1 The parties should consider potential Supplemental Services and determine if the Architect shall be required to provide any Supplemental Services. The Architect is not responsible for any Supplemental Service unless specifically so designated in this Section. For each service identified as the Architect’s responsibility, the parties should describe in detail the nature of the service or reference an exhibit setting forth such information.
If the Architect is required to provide sustainable project services as a Supplemental Service under this Agreement, the parties should clearly identify the Owner’s sustainable objective. Additionally, the parties can incorporate AIA Document E204™–2017, Sustainable Projects Exhibit, into this Agreement to define the terms, conditions and services related to the Owner’s sustainable objective. If E204–2017 is incorporated into this agreement, the Owner and Architect shall incorporate the completed E204–2017 into the agreements with the consultants and contractors performing services or Work in any way associated with the Owner’s sustainable objective. It should be noted, however, that E204–2017 is intended for use with documents that include the traditional design phases (Schematic Design, Design Development and Construction Documents phases). B104–2017 is an abbreviated document and only includes two design phases. Accordingly, the parties would need to revise E204–2017 to coordinate it for use with B104–2017. For more information on participating on a project with a Sustainable Objective download AIA Document D503™, Guide for Sustainable Projects.
Article 4 – Supplemental and Additional Services
§ 4.2.2 Insert an agreed-upon number in the space provided.
§ 4.2.4 Insert the number of months beyond which the Architect shall be entitled to compensation as Additional Services.
Article 8 – Claims and Disputes
§ 8.2.3 Select from three choices of binding dispute resolution: (1) arbitration, (2) litigation or (3) another method that the parties must identify. Other types of dispute resolution include a dispute resolution board or a mini-trial. For additional information about other methods of dispute resolution, refer to The Construction Industry’s Guide to Dispute Avoidance and Resolution or visit adr.org for more information.
Article 11 – Compensation
There are at least ten methods of computing compensation for architectural services. Four of these methods are time-based, reflecting in different ways the time spent by the Architect on the Project:
Multiple of Direct Salary Expense, in which direct salaries of designated personnel are multiplied by a factor representing benefits, overhead and profit.
Multiple of Direct Personnel Expense, in which the salaries plus benefits of designated personnel are multiplied by a factor representing overhead and profit.
Professional Fee Plus Expenses, in which the salaries, benefits and overhead of designated personnel are the expense and the fee may be a multiplier, percentage or lump sum representing profit.
Hourly Billing Rates, in which salaries, benefits, overhead and profit are included in the rate for designated personnel. Other methods, while they may be indirectly related to time expended on the Project, do not use time as a factor in the calculation
Multiple of Consultants’ Billing, in which Consultants’ bills are multiplied by a factor representing the Architect’s administrative costs, overhead and profit.
Square Footage, in which the square footage of the structure is multiplied by a pricing factor.
Unit Cost, in which the number of certain units such as rooms, acres, etc., is multiplied by a pricing factor.
Royalty, in which compensation is a share in the Owner’s income or profit derived from the built facility.
The AIA makes no recommendation as to the appropriateness of any of these methods of compensation on a particular project, nor does the AIA suggests that the foregoing list includes all methods that are possible, practical or in actual use. The use of any of the compensation methods described above, singly or in combination with other methods, is a business decision for the Architect and the Owner. Further, the AIA makes no recommendations and has no guidelines or schedules that specify the amount of compensation an architect should be paid.
Sample language is provided below for several of the most widely used methods of compensation.
If a Multiple of Direct Salary Expense is used, include multipliers using words and numerals in the following insert:
Compensation for services rendered by principals and employees shall be based on a multiple of ________ (__) times Direct Salary Expense, which shall be defined as the direct salaries of the Architect’s personnel engaged on the Project excluding any costs of mandatory or customary contributions and benefits. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
If a Multiple of Direct Personnel Expense is used, include multipliers using words and numerals in the following insert:
Compensation for services rendered by principals and employees shall be based on a multiple of ________ (__) times Direct Personnel Expense. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
If a Professional Fee Plus Expenses is to be used, include the dollar figure and the appropriate multipliers (using words and numerals) in the following insert:
Compensation shall be a Fixed Fee of ________ ($__) plus a multiple of ________ (__) times Direct Personnel Expense. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
Alternatively, the fee (representing profit) may be calculated as a multiplier or percentage.
If Hourly Billing Rates are used, include the cumulative amount for salary, benefits, overhead and profit to fix each rate using words and numerals in the following insert:
Compensation for services rendered by Principals and employees shall be based upon the hourly billing rates set forth below:
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- Principals’ time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, the Principals are: (List Principals, such as owners, partners, corporate officers and participating associates.)
- Supervisory time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, supervisory personnel include: (List managerial personnel by name or job title, such as general manager, department head or project manager.)
- Technical Level I time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level I personnel include: (List those personnel by name or job title who are highly skilled specialists, such as job captains, senior designers, senior drafters, senior planners, senior specifiers or senior construction administrators.)
- Technical Level II time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level II personnel include: (List those personnel by name or job title who hold intermediate-level positions relative to Technical Level I, such as professionals awaiting licensure and managers of clerical staff.)
- Technical Level III and clerical personnel time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level III and clerical personnel include: (List those personnel by name or job title who occupy junior-level positions, such as word processor or office assistant.)
- Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
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No sample language is provided for compensation based on square footage, unit cost or royalty. Parties choosing one or more of these methods should craft their own language based on the particulars of the Project.
§ 11.2 See methods of compensation shown above for Section 11.1.
§ 11.3 See methods of compensation shown above for Section 11.1.
§ 11.4 See methods of compensation shown above for Section 11.1, if other than a percentage of the invoiced amount.
Article 12 – Special Terms and Conditions
Insert any modifications to the standard text of the document, if the modifications are not otherwise inserted elsewhere in the document. For more information about modifying the document, refer to the Modifications section of these Instructions.
Executing the agreement.
The persons executing AIA Document B104–2017 should indicate the capacity in which they are acting (i.e., president, secretary, partner, etc.) and the authority under which they are executing the Agreement. Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached.
Important.
Modifications. Particularly with respect to professional or contractor licensing laws, building codes, taxes, monetary and interest charges, arbitration, indemnification, format and font size, AIA Contract Documents may require modification to comply with state or local laws. Users are encouraged to consult an attorney before completing or modifying a document.
Reproductions. This document is a copyrighted work and may not be reproduced or excerpted from without the express written permission of the AIA. There is no implied permission to reproduce this document, nor does membership in The American Institute of Architects confer any further rights to reproduce this document. For more information, see the document footer and the AIA Contract Documents® Terms of Service.