Main differences between A401®–2017 and A401®–2007

Summary:

The main differences between A401-2017 and A401-2007 include updates to better coordinate with the 2017 Owner-Contractor Agreements and A201-2017 General Conditions. Key changes involve requiring contractors to provide payment bonds to subcontractors within 30 days, adding checkboxes for key contract dates, and clarifying progress payment calculations. The insurance section has been expanded, and new provisions address the contractor’s duty to notify subcontractors of defects and the handling of professional design services.

AIA Document A401—2017, Standard Form of Agreement Between Contractor and Subcontractor, has been revised to better coordinate with the 2017 Owner-Contractor Agreements and AIA Document A201®–2017, General Conditions of the Contract for Construction. A few of the key changes are discussed below: 

1. 1. 1. The Contractor is now required to furnish a copy of payment bonds applicable to the Subcontract within 30 days of the Subcontractor’s request or as otherwise required by law. This conforms to the law in many jurisdictions and provides the Subcontractor with information necessary to timely file claims under the payment bond. 
      2. Checkboxes have been added that clarify key contract dates. As an example, the format for the date of commencement of the work has been changed to a checkbox allowing the parties to select either (1) the date of the Agreement, (2) the issuance of a notice to proceed (NTP) by the Contractor, or (3) a different date as agreed by the parties. Additionally, 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. 
      3. The provisions for the calculation of progress payments have been clarified and simplified to clearly delineate the basis for each progress payment. 
      4. A more prescriptive provision on retainage has been included that will allow the parties to clearly delineate the retainage amount, exclusions from retainage, and how retainage may be reduced during the course of the Project. 
      5. The insurance section has been expanded and modified to track the insurance requirements set forth in the 2017 Owner-Contractor Agreements. 

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