Content.
Dispute Resolution—Mediation and Arbitration
Synopsis.
AIA Document A141®PDB–2024 is a modified version of A141–2024 and is for use on progressive design-build projects. A141PDB–2024 and consists of the Agreement, Exhibit A, Insurance and Bonds, Exhibit B, Design-Build Amendment that is executed when the Owner and Design-Builder have agreed on the Contract Sum, and Exhibit C, Sustainable Projects. AIA Documents A141–2024 and A141PDB–2024 form the nucleus of the Contract for Design-Build between the Owner and Design-Builder.
Purpose.
AIA Document A141PDB–2024 is a modified version of A141–2024 and is for use on progressive design-build projects. A141PDB–2024 and consists of the Agreement, Exhibit A, Insurance and Bonds, Exhibit B, Design-Build Amendment that is executed when the Owner and Design-Builder have agreed on the Contract Sum, and Exhibit C, Sustainable Projects. AIA Documents A141–2024 and A141PDB–2024 form the nucleus of the Contract for Design-Build between the Owner and Design-Builder.
In A141PDB–2024, the Owner provides a set of criteria establishing the requirements for the Project. Thereafter, the Design-Builder will review to develop a Preliminary Design and then provide a proposal to the Owner regarding the Contract Sum. Upon mutual agreement, the Owner and Design-Builder will execute the Design-Build Amendment to establish the Contract Sum and document the information upon which the Contract Sum is based. The Design-Build Amendment also includes the determination for the Cost of the Work, if the Contract Sum is based on a Cost of the Work with a Guaranteed Maximum Price.
Design-Build is a process in which the owner contracts directly with one entity to provide both the design and construction of the project. The design-builder may be a design-build entity, an architect, construction contractor, real estate developer, or any person or entity legally permitted to do business as a design-builder in the jurisdiction where the project is located. The design-builder’s organization may take a variety of legal forms, such as a sole proprietorship, a partnership, a joint venture, or a corporation. An architect or architectural firm choosing to function as a design-builder may directly contract to perform design-build services or, alternatively, may form a separate corporate entity or joint venture for design-build.
Prior to entering into this agreement, any person or entity that wishes to act as the design-builder should consult its legal counsel and insurance advisers. Some states may restrict or prohibit design-build practices under statutes that regulate architectural registration, contractor licensing, or incorporation of professionals.
Related documents.
AIA Document A141PDB–2024 is part of the Design-Build family of documents. This family of documents is intended to govern the relationships among the parties to a design-build project, and consists of the following documents:
A141®–2024, Agreement Between Owner and Design-Builder for a Traditional Design-Build Project
A141®PDB–2024, Agreement Between Owner and Design-Builder for a Progressive Design-Build Project
A441™–2024, Agreement Between Design-Builder and Subcontractor for a Design-Build Project
B141™–2024, Agreement Between Design-Builder and Architect for a Traditional Design-Build Project
B141™PDB–2024, Agreement Between Design-Builder and Architect for a Progressive Design-Build Project
C141™–2024, Agreement Between Owner and Consultant for a Design-Build Project
C441™–2024, Agreement Between Architect and Consultant for a Design-Build Project
G744™–2024, Certificate of Substantial Completion for a Design-Build Project
G746™–2024, Authorization to Proceed with Early Release Work for a Design-Build Project
Changes from A141–2024.
As stated above, A141PDB–2024 is based on A141–2024. Accordingly, a lot of the language is the same in both documents. However, because of the increased involvement of the Owner that is present in progressive design-build and the more defined design process, it was necessary to create A141PDB–204. The modified provisions found in A141PDB–2024 reflect the differences between traditional and progressive design-build. For more information regarding these modifications, please see the design-build guide.
Dispute Resolution—Mediation and Arbitration.
This document contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process, but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act.
The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, contact the American Arbitration Association at (800) 778-7879 or visit the website at adr.org