AIA Document B102–2017 is a standard form of agreement between owner and architect that contains terms and conditions and compensation details. B102-2017 does not include a scope of architect’s services, which must be inserted in Article 1 or attached as an exhibit. The separation of the scope of services from the owner/architect agreement allows users the freedom to append alternative scopes of services. AIA standard form scopes of services documents that may be paired with B102–2017 include AIA Documents B201™, Architect’s Services: Design and Construction Contract Administration; B202™, Architect’s Services: Programming; B203™, Site Evaluation and Planning; B204™, Value Analysis; B205™, Historic Preservation; B206™, Security Evaluation and Planning; B207™, Architect’s Services: On-Site Representation; B209™, Construction Contract Administration; B210™, Facility Support; B211™, Commissioning; B212™, Regional and Urban Planning; B214™, LEED® Certification; B252™, Architectural Interior Design; and B253™, Furniture, Furnishings and Equipment Design. For all document details and a record of changes, see the summary »
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, close 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 – Architect’s Responsibilities
§ 1.5.3 Some insurers have written excess policies which expressly state that they apply only in the event the underlying policies are exhausted through payments made by the underlying insurers (sometimes referred to as “actual exhaustion”). Polices that do not expressly require actual exhaustion are interpreted to permit exhaustion of the underlying policies through payments or contributions made by any combination of underlying insurers, insureds or third parties (sometimes referred to “functional exhaustion”). Policies that only permit actual exhaustion are counterproductive to settlement, whereas policies that permit functional exhaustion encourage settlement. The intent of this section is to facilitate settlement by requiring that any excess policies allow for functional exhaustion.
Article 4 – Claims and Disputes
§ 4.2.4 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 6 – 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:
Stipulated Sum, in which compensation is listed as a dollar amount.
Percentage of Cost of the Work, in which compensation is calculated by applying an assumed percentage to the estimated or actual Cost of the Work, whichever is most certain at the time the calculation is made.
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 suggest 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.
Article 8 – 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 B102–2017 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.
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.